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Full text of "Report of the Utilities Commission for the biennial period ..."

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North Carolina Siafe library 
RaUigh 

STATE OF NORTH CAROLINA 



THIRD REPORT 



If* 



OF THE 



UTILITIES COMMISSION 



FOR THE 



BIENNIAL PERIOD, 1939-1940 



COMPILATION FROM RAILROAD RETURNS ARE FOR 
YEARS ENDING DECEMBER 31, 1938 AND 1939 



I'M* 



PRESSES OF 

EDWARDS & BROUGHTON COMPANY 

RALEIGH, NORTH CAPOLINm 



* 



* 



UTILITIES COMMISSION 

Stanley Winborne, Commissioner 

ASSOCIATE COMMISSIONERS 
F. L. Seely, Asheville Frank W. Hanft, Chapel Hill 

R. O. Self, Chief Clerh 

Elsie G. Riddick, Assistant Chief Clerk 

Edgar Womble, Utilities Cleric 

H. M. Nicholson, Director of R. R. Transportation 

F. A. Downing, Asst. Director of R. R. Transportation 

Mary Shaw, Motor Carrier Cleric 

Margaret Smith, Reporter 

Sophia P. Busbee, Secretary 

Mrs. Nancy McKethan, Secretary 

Mrs. Alvarado J. Austin, Secretary 

J. 0. Bowman, Bus Inspector 

Broadus Glover, Bus Inspector 

J. W. Smith, Bus Inspector 

C. B. Wade, Bus Inspector 

Virgil A. Wilson, Bus Inspector 



LETTER OF TRANSMITTAL 



His Excellency, 

The Governor of North Carolina, 

Raleigh, North Carolina. 

Sir: 

As required by Section 1065, Chapter 21, Consolidated Statutes, the 
North Carolina Utilities Commissioner and Commission has the honor to 
report for the Biennial Period 1939 and 1940. 

Apology is made for the abridgment of this report. The entire statisti- 
cal section has been eliminated because of the reduction of our appropria- 
tion for such purpose at the 1939 Session of the General Assembly. 

The number of utilities reporting to this Commission as of December 
81, 1939, is summarized as follows : 

Steam Railroad Companies 52 

Motor Vehicle Carriers (passenger) 39 

Motor Vehicle Carriers (intrastate freight) 40 

Motor Vehicle Carriers (interstate freight) 211 

Electric Power & Light Companies 28 

Artificial Domestic Gas Companies 11 

Telephone Companies 77 

Express Companies 1 

Telegraph Companies 2 

The following table shows the relative contribution of consumers and 
customers use of each of these utility services during the year 1939 — 
taxes paid, invested capital, and income of investor : 

Revenue Net Income Taxes Value Plant 

Railroads 1*61,083,644 $ 846,914 $ 4,221 ,638 $299,457,092 

Express 1,708,469 262 104,502 6,243,603 

Pullman 60,625 16,180 15,693 

Motor Vehicle +5,840,266 438,645 851,062 2,136,554 

Motor Vehicle, Inter- 
state freight *5 , 233 , 378 

Electric 33,053,686 7,444,707 5,407,343 227,675,762 

Gas 2,063,106 (235,786) 304,615 15,868,285 

Street Railways 39,178 (25,561) 5,194 

Buses (Street) 1,196,566 (157,088) 236,437 5,093,532 

Water 77,764 (14,833) 16.294 1,150,579 

Ice 100,907 6,800 6,557 209,264 

Merchandise 2,094,296 83,458 9,750 

Telephone 10,269,590 1,998,802 1,681,837 32,127,406 

Telegraph 1,864,867 14,478 51,100 4,729,545 

$124,686,332 $10,416,978 $12,912,022 $600,691,622 

At no time during our history since the last World War has transporta- 
tion, communication, and electric power been in greater demand, and 
probably the demand at the present time for these services is already 
greater than at that time. 

Legislative Mandate requires all common carriers of both property 
and passengers, by Railway, Highway, or "Waterway operating within the 

* Prorated on mileage basis. 

t Intrastate carriers only, and exclusive of street buses. 

t Note: Figures in parenthesis deficit. 



Q O 



4 N. C. Utilities Commission 

state, to file tariffs of rates and charges with the Commission, under its 
rules governing size, form and public notice. As a condition precedent to 
their legality, these publications must be filed in accordance with the 
Commission's regulations and when those conditions have been met they 
have the full force and effect of law as has been held by the highest Fed- 
eral and State courts. Rates, classifications, charges, and rules covering 
transportation terminal services, storage, baggage, explosives and danger- 
ous articles, processing-in-transit, packing and numerous other services 
performed by the carriers are included. In addition to the foregoing with 
respect to common carriers operation in intrastate commerce, the Com- 
mission is charged, under Chapter 235, Public Laws of 1929, with the 
duty of maintaining reasonable and non-discriminatory interstate freight 
rate structures to and from the State of North Carolina. This requirement 
necessitates the maintenance of a file of tariffs publishing interstate 
rates and charges to and from North Carolina and adjoining states. 

Prior to ratification on April 3, 1939, of Chapter 365, Public Laws of 
1939, the Commission was required by law to first approve all increases 
proposed by the carriers before effectuating such advanced rates. Since 
that time proposed increases become effective upon expiration of thirty 
days after filing and posting unless the Commission either on its own 
initiative or upon petition of shippers or receivers postpones the effective 
date and enters into a hearing concerning the lawfulness of the proposed 
rates. Several hearings have been held under the statute referred to above 
and where decisions have been reached orders resulting therefrom appear 
elsewhere in this report. 

It is contemplated that a revision of the class or basic rate structure 
will become effective in November, 1940, on North Carolina intrastate 
traffic, and on interstate traffic for distances up to 200 miles between 
North Carolina on the one hand, and South Carolina, Tennessee and 
Georgia, on the other hand, resulting from a series of formal proceedings 
before the Interstate Commerce Commission prosecuted by this depart- 
ment, and formal hearings before an informal conference with this 
Commission. 

Upon showing made by this Commission, the Interstate Commerce 
Commission, in November 1936, removed to some extent the discrimina- 
tory freight rate situation existing against North Carolina by ordering a 
reduction in the rate structure between North Carolina and Northern 
States, including Virginia. Consequently, your Commission ordered what 
was considered a corresponding reduction in the intrastate rates which 
amounted to approximately eight per cent. The resulting rates were pub- 
lished and filed by the railroads under protest, after which the car- 
riers then petitioned the Interstate Commerce Commission to investigate 
the lawfulness of our state rates under Section 13 of the Interstate Com- 
merce Act. That section of the law was enacted by Congress after a state 
v. interstate rate controversy similar to this one had gone to the Supreme 
Court of the United States under the Commerce Clause of the United 
States Constitution. The ensuing proceeding was carried on the Federal 
Commission's Docket as No. 27900 and the decision of that Commission 
refers to the savings in freight of $57,000 per year to North Carolina 
intrastate shippers under the rates prescribed by the State Commission 
and proposes that the North Carolina reduction be held to six per cent 



Letter of Transmittal 5 

of the former rates instead of eight per cent for hauls not exceeding 200 
miles with no reduction for hauls above 200 miles. The average length 
of haul is 120 miles. This makes the savings to North Carolina reduction 
shippers approximately $40,000 per year which, added to the reduction 
resulting from this litigation in interstate rates on shipments between 
North Carolina and adjoining Southern States, will boost the annual 
savings to more than the former figure of $57,000, which will accrue to 
shippers and receivers of both raw material and manufactured products. 

The railroads recently completed an exhaustive study of their classifi- 
cation in relation to modern trends in business and by a reclassification 
of approximately 3,000 manufactured and semi-manufactured articles of 
merchandise traffic reduced their intra- and interstate rates substantially 
on that class of traffic. 

The Commission, under Consolidated Statute 1075, is directing and 
assisting in the prosecution of the following cases involving interest rate 
adjustments and revisions pending on the Interstate Commerce Commis- 
sion's docket : 

ICC Docket No. 28300. This proceeding styled, a Class Rate investi- 
gation, 1939," was instituted by the Interstate Commerce Commission 
on its own motion. It is a general investigation into all class rate levels via 
railroads, via water and via water-rail within and between Southern 
Official, Southwestern and Western Trunk Line Territories. Since the 
interstate rates between points in North Carolina and between points in 
North Carolina, on one hand, and points in the territories named on the 
other, are involved, this Commission is participating actively in all 
preliminary preparations and will, through the Rate Policy Committee 
of the Southern Governors' Conference (of which your Utilities Commis- 
sioner is a member) be represented by counsel, cost accountant and traffic 
witness at the hearings. The scope of this case and those consolidated with 
it, is broader than any ever before conducted by any Commission in this 
country, and while as previously stated, was instituted on the Interstate 
Commerce Commission's own motion, actually resulted from the efforts 
of the Southern Governor's Conference and shippers' organizations, 
directed to the removal of rate barriers which now are and in the past 
have retarded the flow of commerce from, to, and between Southern points. 

ICC Docket Nos. 28310 and MC-C 15.0. These are also proceedings 
initiated by the Interstate Commerce Commission of inquiry and investi- 
gation into and concerning descriptions, minima and ratings published 
in the Consolidated Classification for application, interstate between all 
points in the United States. These cases are companion to and have been 
consolidated with Docket No. 28300, described above. Since class rate 
levels rest ultimately upon classification ratings, it is apparent that uni- 
formity and stability are necessary features of classifications. By way of 
illustration, there is lack of uniformity as between Southern and Official 
Classification rail ratings at present, so that, when it is stated that 
Southern rail class rates average 38 per cent higher than Official class 
rates, the statement is true only in so far as the scales, in and of them- 
selves, are concerned, while it is probably far from true as to the applied 
rates. The situation is further aggravated by the fact that the ratings in 
the two classifications undergo changes independently of each other. 
In the light of these facts, it will be the purpose of this Commission to ad- 



6 N. C. Utilities Commission 

vocate, in this proceeding, a classification which will be, as nearly as prac- 
ticable, uniform and unvarying for all forms of transportation and ap- 
plicable within and between all territories. 

ICC Docket Nfos. 28550 and MC-C 210. While these proceedings 
were instituted by the Interstate Commerce Commission on its own 
motion, they were precipitated by the action of the rail and steamship 
line, members of the Southern Freight Association in revising (down- 
ward generally) the ratings on some 3,200 classification items governing 
intrastate, intraterritorial and interterritorial rates, effective September 
1, 1940. The Southern Motor Carriers Rate Conference published similar 
charges for account of its member lines, also effective September 1, 1940, 
and then petitioned the Interstate Commerce Commission for suspension 
of both publications. The Interstate Commerce Commission voted not to 
suspend the reductions but announced instead the investigations num- 
bered as shown in the caption. 

ICC Docket No. 28450. This case is a complaint against the rules, 
regulations, accessorial services and charges, and rates on livestock in 
carloads within the South, from the South to the East, from the West to 
the South, and from the West to the East through the South, brought by 
this Commission, and Public Service Commissions of other Southern 
States, including Virginia. 

Its purpose is to afford the livestock producers in the South their 
proper natural competitive advantages which have, in the past, been 
denied them due to more favorable rate, service, and privilege publica- 
tions from other producing territories, to the large consuming points. The 
scope of this case is broad and all of its many features important to the 
producers of North Carolina. Perhaps, the most important is the one 
directed toward establishment of through one-factor rates from North 
Carolina origins to the important consuming points in the East in lieu of 
the present ragged, high and clumsy, combination basis. 

Potatoes, Reduction in Carload Minimum Weight. On June 3, 
1940, the rail carriers, at the instance of this Commission, the Depart- 
ment of Agriculture and various shippers, reduced the carload minimum 
on potatoes, in bags, from North Carolina origins to destinations in 
Truck Line, New England and Central Freight Association Territories, 
from 30,000 to 24,000 pounds, in order that North Carolina producers 
and shippers might be on a parity with their competitors located in other 
Southern states, and in order that their potatoes, in packages other than 
barrels, might reach Official Territory markets in better condition. 

This reduction in minimum resulted in higher minimum per car 
charges from intermediate origins in Virginia from which the 30,000 
pound minimum still obtained and it was therefore necessary for carriers 
to secure relief from the Fourth Section of the Interstate Commerce Act. 
This Commission, the Department of Agriculture, and shipper repre- 
sentatives have made preparation to assist the rail lines in securing this 
relief, but the hearing on their application, which was set for October 22, 
1940, has been indefinitely postponed, due, we understand, to representa- 
tion from origin rail lines in Virginia that they are preparing to make a 
like reduction in the minimum from intermediate origins in Virginia, 
thereby obviating the necessity for relief. 

ICC Docket No. 4785. Rail carriers filed tariff supplement to be- 



Letter of Transmittal 7 

come effective May 15, 1940, carrying a revised loading rule for water- 
melons originating in North Carolina and other southern states which 
would have increased the loading cost about $4.00 per car. Upon petition, 
the Interstate Commerce Commission suspended the publication and has 
set the matter for hearing in Savannah, Ga., on November 18, 1940. This 
Commission will participate in the proceedings on behalf of North Car- 
olina shippers and growers, and in conjunction with the Department of 
Agriculture, will assist shipper witnesses in their presentation. 

Electric Power and Light. In connection with this subject, your 
attention is called to Chart I (p. 8), a graph showing the average Kwhr 
cost of electric energy to residential consumers in the Linked States for the 
years 1932-1939, both inclusive, and a comparison of the North Carolina 
average of the same cost and also graph showing the increase in con- 
sumption in this class of service for the same years. The consumption 
increased 100 per cent and the rate decreased about 60 per cent in this 
state. The decrease in rates makes increase in consumption possible, and 
the increase in consumption enabled the utility companies to apply the 
rates without financial injury. 

During the past decade investment in new capital in public utility 
plants did not anything like equal the investment in similar construction 
during the previous decade of the 20's, and the increase in population 
and the demand of industry has taken up the surplus slack until we have 
reached the point where additional generating plants will have to be 
provided to meet any additional great growth of demand. One large 
steam plant has been completed and put into operation in the state and 
two large hydro plants have been authorized. Evidently, this state is in 
a very good position as to additional power availability. 

In 1939 the twenty-eight electric companies generated by steam and 
hydro, two and one-quarter billion Kwhrs and sold over two and three- 
quarter billions, of which more than one-half of one billion was im- 
ported. At the latest estimate, these same companies had 315,514 cus- 
tomers. In the seven years ending December 31, 1939, the commercial 
rate average cost has been reduced from 5.62 cents per Kwhr in 1932 to 
2.88 cents in 1939, and consumption increased per customer during this 
period from 1,724 Kwhrs per year in 1932 to 5,516 Kwhrs in 1939. The 
industrial rate was reduced in the same period from 1.34 cents in 1932 to 
.98 cents in 1939, and consumption increased from 148,649 Kwhrs per 
year in 1932 to 268,926 Kwhrs in 1939. So far as the Commission is 
advised North Carolina industry is being adequately served. All our 
companies have physical connection with other major generating sec- 
tions and no advice of power shortage has been received. 

One significant thing about the utilities listed elsewhere in this com- 
munication indicates that they pay taxes of approximately two and one- 
half million dollars in excess of their net income, and indications point 
to the fact that there may be no relief soon, as the New Federal Revenue 
Act has already made increases during the present calendar year. It is 
difficult to maintain low rates when all expenses connected with con- 
struction and operation, as well as taxes, are on the increase. 

Many things relating to the regulation, service and rates of telephone, 
telegraph, motor vehicle, and gas utilities could be presented in this 
communication, but in the interest of brevity, separate reports and 



N". C. Utilities Commission 



chart I 

Residential Revenue and Consumption Ratios 
North Carolina and United States. 1932-1S39 
(Ratio Scales) 



'000 
900 




Kilowatt-Hours Per Customer / 

/ 

/ 
/ 
/ 


600 






700 






600' 










500 







Revenue Per Kilcwatt-Fiur 



■(/.S.4V£/?/lG£ 




/932 /933 /934 1933 /936 /937 /93d /939 

communications will be made with reference to these matters as necessity 
may require or they may arise. 

Respectfully submitted, 

Stanley Winborne, 
Utilities Commissioner. 
Attest : 

R. O. Self, Chief Clerk, 

H. M. Nicholson, Director Railroad Transportation, 

Edgar Womble, Statistician. 



GENERAL ORDERS 

Order No. U-15 

QUARTERLY REPORTS ORDER 

In order that the Commission may be posted on monthly business conditions 
of the major utilities (reported quarterly), it is therefore 

Ordered, that, beginning with the year 1939 all gas companies, regardless of 
annual revenue, all railroad and motor vehicle carriers, and all other utilities 
whose revenue for the year 1937 exceeded $25,000, shall make quarterly reports 
(segregated by months) to this Commission. Said reports are to be filed not 
later than 15 days after the close of each quarter, except the first of these 
reports which should be filed not later than May 1, 1939. 

This the 19th day of April, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commission: 

R. O. Self, Chief Clerk. 

EX PARTE NO. U-16 

Order 

IN THE MATTER OF RULES OF PRACTICE AND PROCEDURE 

To conform with the provisions of Chapter 365 of the Public Laws of 1939 
(H.B. 935) relating to the investigation and suspension of increased rates, 
fares, or charges, or increases in classification ratings, rules, regulations and 
practices, and to serve as a guide in filing tariffs and schedules, the following 
Rules of Practice and Procedure are prescribed : 

Rule 9% (a). Protests and requests for suspension of passenger and 
property carrier tariffs or schedules. Suspension of tariff schedules under 
Section 3, Chapter 365 of the Public Laws of 1939 will not ordinarily be con- 
sidered unless protest and application therefor is made in writing or by 
telegram at least 10 days before the effective date named in the schedule. Ap- 
plications for suspension must indicate the schedule affected by its proper 
number and give specific reference to the items against which protest is made, 
together with a statement of the grounds thereof. If such application is made 
by telegram, it must be immediately confirmed and followed by application in 
writing. The telegram should succinctly state the substance of the matters to 
be set forth in the written application. Three copies of each written applica- 
tion must be furnished to the Commissioner. 

(b). At the time request for suspension is forwarded to the Commissioner, 
the protestant should send direct to the publishing officer of the carrier, or 
tariff issuing agent, a copy of the petition for suspension, and the copies 
furnished the Commissioner should be accompanied by a statement that the 
carrier or agent named has been furnished such copy. 

(c). The carriers shall be afforded an opportunity to answer or explain 
allegations or questions raised in a request for suspension, but the carriers 
must give immediate attention to such matters and forward their representa- 
tions at once. If the carrier or tariff agent answers protestant's petition, a 



10 N 7 . C. Utilities Commission 

copy of such answer must be sent directly to the protestant at the same time 
it is forwarded to the Commissioner. 

(d). Appearances. In Investigation and Suspension proceedings before the 
Commissioner, parties interested may appear without applying for or receiv- 
ing leave to intervene. Those entering appearances thereby become parties to 
such proceedings. 

(e). Compelled or competitive rates. In the event rates which are published 
to expire on a date certain are. not extended by the carriers, petitions for 
suspension of the expiration of such rates may be filed with the Commissioner, 
subject to the provisions of preceding paragraph (a) to (d), inclusive. 

(f). Short publication notice. Carriers shall petition the Commissioner, 
setting forth full grounds therefor, for relief from the provisions of Section 4 
of Chapter 365 of the Public Laws of 1939, in the event it is desired to publish 
increased rates, fares, charges, and classifications, or rules, regulations or 
practices, the result of which will be an increase, on less than thirty days' 
notice to the Commissioner and public. 

(g). Orders outstanding. All orders of the Commissioner or of the Com- 
mission outstanding and in force on April 3, 1939, the date on which Chapter 
365 of the Public Laws of 1939 was ratified, which orders relate to rates, fares, 
charges, classifications, regulations, or practices of transportation companies, 
shall remain in full force and effect until further order of the Commissioner 
or the Commission. 

(h). Petition for vacation, reversal or modification of orders. If any order 
of the Commissioner or Commission is sought to be vacated, reversed, or 
modified by reason of matters which have arisen since the hearing, or of 
consequences which would result from compliance therewith, the matters 
relied upon by the petitioner must be fully set forth in the petition. If vaca- 
tion, reversal, or modification of any order is sought for the purpose of per- 
mitting the publication and filing of rates, fares, charges, classifications, regu- 
lations, or practices other than those required by the order, the application 
should show clearly and with such particularity as is practicable the reasons 
or conditions relied upon as a basis for the application, and the changes 
proposed. 

(i). Exception. The foregoing rules shall not be construed as requiring 
transportation companies to petition the Commissioner for authority to reduce 
rates, fares, charges, classifications, regulations, or practices whenever they 
deem it to be desirable, but notices, as required by Rule No. 9(b), shall be filed 
with the Commissioner. 

(j). Tariff identification. Each effective tariff, and supplement thereto, 
containing intrastate rates, fares, charges, classifications, regulations or prac- 
tices, on file with the Commissioner, must show on its title page the N.C.U.C. 
number thereof. Beginning with N.C.U.C. No. 1, numbers shall run in con- 
secutive numerical order. Any subsequent tariff must also show the N.C.U.C. 
number of the tariff canceled, changed, or modified. To effect the identification 
of tariffs required herein, carriers and agents may file a blanket supplement 
to show the N.C.U.C. number assigned to each effective tariff now on file. 



General Orders 11 

Carriers and agents now following this procedure are not required to change 
their existing series. 

The foregoing rules shall become effective with the date of this order. 
This 6th day of May, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner, 

R. O. Self, Chief Clerk. 
(SEAL) 

DOCKET NO. U-17 
Order 

CHANGE MADE IN PERIOD COVERED BY ANNUAL REPORTS OP 
MUNICIPALITIES OPERATING ELECTRIC, GAS AND/OR TELEPHONE 
SYSTEMS. 

This case is a petition on the part of a number of the municipalities of the 
state which operate and own electric lighting and power systems, presented 
through executive secretary, Patrick Healy, Jr., of the North Carolina League 
of Municipalities, asking that the commission change the period for which 
plant operations are to be reported from the calendar year, as now required, 
to the fiscal year ending June 30. 

The change requested by said municipalities, it is pointed out by them, 
would facilitate the making of said annual reports required by this Commis- 
sion as the accounts and all other business of the municipalities are on a 
fiscal year period. 

Being convinced that the change requested would be helpful to municipal- 
ities without injury to any public interest, therefore it is 

Ordered, that from and after effective date of this order all municipalities 
operating electric, gas and/or telephone systems shall file with this commis- 
sion an annual report for the fiscal year ending June 30, in lieu of calendar 
year period previously provided. 

This the 12th day of January, 1940. 

Stanley Winborne, 

Utilities Commissioner. 

R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1. 

OPERATION UNION BUS STATIONS ESTABLISHED UNDER ORDER OP 

JUNE 12, 1925, AND AMENDMENTS THERETO. 

Order 

Whereas, an order was issued by the predecessor of this Commission on 
June 12, 1925, setting forth certain regulations with reference to the estab- 
lishment of union bus stations and the control and operation thereof; and 
because of the fact that there were few, or none, at that time experienced in 
the operation of such stations, no specific rules for the operation were 
promulgated in said order. As bus transportation has developed many ques- 
tions have arisen which were promulgated in single rules, but it was the 
desire of this Commission that the carriers, through their experience in 



12 N. C. Utilities Commission 

operating such stations, would ascertain the best practices and put same in 
force by incorporating them in their by-laws, especially for the direction of 
the station management. 

The original order contemplated that all persons employed in connection 
with the operation of the bus stations should be on the bus station payroll. 
The increase in volume of traffic has made it necessary for the large oper- 
ators, especially in the large cities, to provide dispatchers for their own buses. 
This has necessarily caused some confusion between the operations, and 
especially has it been found necessary to issue orders that these dispatchers 
were not to solicit business or in any way attempt to influence passengers in 
the several stations. These instructions have not always been respected and in 
many instances there has been a feeling on the part of some operators that the 
bus station manager was partial in his treatment of the tenants in his station 
and much complaint has been made to this office to the effect that various 
carriers at times were not given proper consideration at certain stations. 
Therefore, this order is issued for the purpose of laying down a set of rules 
for the government of such stations and for the purpose of letting station 
managers know that this Commission will back them up in carrying out the 
provisions thereof, and for the purpose of holding the station managers 
responsible for the employees of such stations, and for the impartial treat- 
ment of the carriers using such stations for the convenience of the service to 
the traveling public. 

Therefore, it is Ordered 

1. That the control of the union station shall be vested in a Board of 
Directors, composed of one director for each operating company using the 
station, and each director shall have one vote. 

2. That it shall be the duty of the directors to elect, by a majority vote, a 
station manager and to instruct and direct him in the management of the 
station, and it shall be their duty to see that the rules set forth under "The 
Manager's Duties," with such amendments and additions as may be made 
thereto from time to time, are strictly adhered to. The manager may be 
removed by a majority vote of the Board, provided that no person shall be 
considered qualified for the position of Station Manager who is related by 
blood or marriage to any executive of any carrier using his station, who has 
been discharged by any bus company for cause, nor who has been temporarily 
dismissed or discharged because of partial or unsatisfactory service rendered 
at other stations, and provided that such managers shall be subject to removal 
for violation of these rules or other reasonable cause in the discretion of the 
Utilities Commissioner or the Board of Directors. 

3. That the Board of Directors, by a majority vote, shall fix all salaries and 
wages of station employees, authorize additions or improvements, increase or 
decrease the percentage to be assessed for the operation and maintenance of 
the station and handle all of the general business in connection therewith. 

4. That in the event that a vote of the majority of the Board of Directors 
upon any matter may seem unfair or detrimental to the interests of the 
minority, the latter may appeal the controversal subject to the North Carolina 
Utilities Commission for settlement. 

5. That all necessary help, including telephone operators, information 
clerks, porters, ticket agents and dispatchers shall be employees of the union 



General Orders ■ 13 

station and that no representatives of any of the operating companies shall, in 
any way, hold themselves out as such to the public, nor talk to any of the 
station employees, other than the manager, relative to bus business on the 
station property, and should this provision be violated, it shall be the duty of 
the Board of Directors to prohibit such employees from coming on the station 
property; provided, that in cities of more than thirty thousand population, 
the manager shall be given sufficient help so as to relieve him of performing 
any specific duty in order that he may be free to supervise the employees in 
their several activities. The qualification of ticket agents shall be the same as 
that provided for station managers in Paragraph 2. 

6. The employees of carriers, when off duty under the Wage and Hour Act, 
shall not loiter in the stations nor upon station premises. 

7. It shall be the duty of the Board of Directors to purchase for the station 
company adequate insurance in approved insurance companies against the 
various hazards to which they are exposed, including, but not limited to, 
the following: 

Fidelity bonds on all employees who handle money, public liability on the 
station premises, fire coverage on all property, safe burglary, holdup and 
messenger, and workman's compensation. 

8. That the Board of Directors shall prescribe the form of the monthly 
financial statement to be prepared by the station manager and forwarded to 
the operating companies and shall provide for an annual audit of the accounts 
of the station by an independent Certified Public Accountant, who may also 
make an inspection of the books and records quarterly to see that the accounts 
are being kept in proper form. A copy of the annual audit shall be submitted 
to each member of the Board of Directors and this Commission and shall 
provide for joint audits of ticket sales and funds received therefrom to be 
conducted by member companies. These audits may be called upon request of 
any of the member companies, on sufficient notice to permit all member 
companies to have their representative participate, as it is impracticable for 
one company representative to check the cash due his company unless the 
cash due all the other companies is checked at the same time. 

9. That the Board of Directors shall choose their executive officers — Chair- 
man and Secretary — and may designate someone not a member of the Board 
to act as Secretary. 

10. Where two or more carriers operate departing schedules from any 
station to a common destination and the loading parking space gives any 
preferential advantage by virtue of accessibility to the station passenger exit, 
the station manager shall require daily alternation of positions while loading. 

11. That the Board of Directors shall provide a conspicuous "Union Bus 
Station" sign to be placed on the outside of such stations; shall allocate 
advertising space within the station for general advertising only, but no 
preferential, partial, or demand advertisements shall be placed therein; and 
placard advertising shall not be used on buses departing or arriving while on 
station premises. No advertising herein permitted shall be posted by anyone 
except the station manager. A file for printed schedules, fares, and advertising 
folders shall be kept accessible to the public. 



14 JST'. C. Utilities Commission 

12. That the duties of the station manager shall be: 

(a) He shall be in active control of the station operation, with complete 
supervision over all dispatchers, agents, baggage men, information clerks, 
porters, telephone operators, and all other station employees, and it shall be 
his responsibility to employ them and discharge them when found in- 
competent. His primary responsibility shall be to see that the station is 
operated efficiently, economically and impartially, to the benefit of all carriers, 
and that all employees comply with the letter and the spirit of these rules to 
insure absolute strict neutrality in the sale of tickets and tendering of in- 
formation to the patrons. He shall see that all sales of transportation are 
correctly reported at such times and in such manner, and upon such forms as 
are prescribed by each operating company, and that the funds which are 
received from the sale of transportation are deposited or transmitted in 
accordance with instructions from the chief financial officer of the respective 
companies. All contacts between the operating company representatives and 
the union station shall be through the manager, and station employees shall 
not be contacted by operating company employees except under the station 
manager's supervision. 

(b) He shall not permit any of the station employees to enter into any 
sales contest, put on by any individual company. This provision, however, 
shall not exclude educational programs, which, however, must first be sub- 
mitted to the station manager and Board of Directors for approval. 

(c) He shall hold meetings of the employees of the station, at regular 
intervals, jointly with traffic and operating representatives of the operating 
companies, for their instruction as to traffic and operating conditions of the 
various companies. These meetings shall be presided over by the station 
manager and representatives from each company shall be invited to all meet- 
ings. It shall be the station manager's duty in presiding at these meetings to 
see that nothing is introduced into them which might tend to influence an 
employee to violate neutrality. Company representatives may have an oppor- 
tunity to explain the features of their service so that the employees can, in 
turn, pass it on to prospective passengers requesting information about the 
services of their particular line when not repugnant to Paragraph (a). 

(d) He shall see that sub-rentals are collected promptly, that all company 
accounts are in order, that the business of each operating company is handled 
in accordance with their instructions, that adequate supplies of tickets, 
schedules, pamphlets, etc., are requisitioned from the various operating com- 
panies, and keep, or have kept under his supervision, the records and accounts 
of the station in accordance with the procedure set up by the Certified Public 
Accountant provided for in Rule No. 8. 

(e) He shall prepare and submit a budget to the Board of Directors for 
their approval, and when approved, he shall be responsible for the operation 
of the station within the limitations of the budget until another regular, or 
called meeting. This Commission may require the increasing of such budgets 
for repairs, sanitation or more service. He shall also prepare proper financial 
statements at the end of every month, setting forth the financial condition of 
the station and its income and expenses for the preceding month, together 
with the assessments to be paid by the respective companies, and forward one 
copy of this report to each director. 



* ** /f 



General Orders 15 

(f) He shall furnish, signed by him, a copy of the following set of rules to 
each employee: 

"(Blank) Union Station is operated jointly so as to provide passenger 
station facilities from and to this city for buses of the following com- 
panies: (Alphabetical list of companies) 

"As a union station employee you are equally responsible to each bus 
line in rendering loyal, IMPARTIAL travel information and service. 
Absolute and strict neutrality on sale of tickets, checking of baggage and 
tendering of information to patrons will be enforced. Favoritism or 
discrimination by expression, manner or attitude will cause dismissal. 
"In imparting information concerning service to competitive points or 
selling tickets to such points unless the prospective passenger voluntarily 
designates the line, employees will name the various lines which furnish 
the particular service, and also state the leaving and arriving time of the 
next schedule on each line, in order that the passenger may choose and 
designate the desired route. No disparaging remarks or statements, about 
one company or another may be made at any time, but all requests for 
information concerning the facilities of any particular line should be 
answered freely and fully. 

"After passenger destined to an interline destination has expressed pref- 
erence as to the initial line, the passenger shall be routed to destination 
in accordance with the tariff and routing instructions of particular line 
chosen by him. 

"In ticketing via foreign lines to, and via competitive points beyond the 
line gateway, the foreign lines affiliated with the initial line shall be used 
unless passenger requests other routing. 

"As agent for each of the companies operating into this station, in receiv- 
ing complaints or attempting adjustment, you shall assume in each par- 
ticular case that you are employed by the line involved; in other words, 
do not attempt to emphasize or point out that one of the companies was at 
fault and not the (Blank) Union Station. 

"Information relating to the business of one of the lines must not be 
furnished to representatives of any other line, under any circumstances. 
"Blotters, letterheads, and other advertising material furnished by initial 
or foreign lines must not be used at the ticket windows or information 
booths or be distributed by any station or company employee upon the 
station premises. 
"Infraction of these rules is cause for immediate dismissal." 

13. That all complaints relative to the station operation shall be made to the 
station manager, in writing, and must be specific, giving the hour, date, 
employee or employees involved, and a brief summary of the specific instance 
thought to be unfair. The manager shall immediately send a copy of each 
such complaint to each member of the Board. He shall endeavor to correct the 
matter to the satisfaction of the complaining company, but should this be 
impossible, he shall request the Chairman to call a meeting of the Board and 
the matter shall be corrected by the Board. It shall, however, be his duty to 
immediately dismiss any employee found guilty of showing any favoritism in 
the sale of tickets or tendering of information to prospective passengers, or 
any discrimination by expression, manner or attitude. 

14. That moneys of the union station shall be deposited in a bank, or banks, 
designated by the Board of Directors, and that the station manager be placed 
under adequate bond to protect the companies from any loss whatsoever, and 
with this protection funds may be disbursed on the single signature of the 
station manager. 

15. The North Carolina Utilities Commissioner will determine what future 
carriers may use such stations, if and when such occasion arises. 



».U it* •*«**> **'* s 



16 !N\ C. Utilities Commission 

16. That in event of the sale of one of the member companies, or the sale by 
a member company of a portion of its operation, the purchaser shall have all 
rights and privileges enjoyed by the original member in proportion to the 
purchase. 

17. That small operators, by unanimous consent, may be permitted to use 
such stations on a tenant basis, such tenants to be furnished full and impartial 
station facilities. 

18. That each company shall designate an alternate director, to serve at 
meetings in the enforced absence of the duly designated director. 

19. That all union bus stations now organized and in operation shall so 
continue with the present personnel until January 1, 1939. On January 1, 1939, 
all dispatchers and other necessary employees shall be placed upon the union 
station payrolls; otherwise, these rules shall become effective on December 
15, 1938, at 12:00 M. o'clock. 

20. A copy of these rules shall be kept posted by station manager in each 
station, accessible to the public. 

This December 12, 1938. 

Stanley Winrorne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1. 

AMENDED RULES FOR OPERATION UNION BUS STATIONS ESTAB- 
LISHED UNDER ORDER OF JUNE 12, 1925, AS AMENDED JUNE 6, 
1939, AND AMENDMENTS THERETO. 

Order 

1. That for purposes of construing this order, when and wherever the 
following words are used, they shall be construed and defined as follows: 

(a) The term "Commissioner" means the North Carolina Utilities Com- 
missioner, unless otherwise stated in connection with the term. 

(b) The term "station" means a designated place where buses regularly 
stop to receive and discharge passengers and their baggage. 

(c) The term "carriers" means any individual, partnership, or corpora- 
tion owning or leasing motor buses and operating under Chapter 
136, P. L. 1927, and Amendments thereto. 

(d) The above definitions shall not be altered by the use of such words 
in the singular or plural as such use may require. 

2. (a) That Union Passenger Bus Stations, or stopping places common to 
all intrastate franchise carriers, shall be established, located, and maintained 
in all towns and cities in this state served by more than one passenger bus 
carrier, so centrally located as may best serve the public, and of such size, 
capacity, and appointment, as the number of buses and passengers using said 
station shall justify; and that stations shall be provided at transfer points 
served by only one carrier, and at such other one-carrier points as the volume 
of business may demand. 

(b) Locations shall be sanctioned by vehicular traffic authorities in 
incorporated cities, and by the District Commissioner of the State 



<**■ W« Ubf ary 



General Orders 17 

Highway and Public Works Commission in unincorporated towns 
and villages, where any question involves street or highway con- 
gestion because of any such station location. 

(c) In all towns and cities of over three thousand inhabitants, preference 
should be given to locations which permit parking off the street or 
highway for loading and unloading purposes. 

(d) In all cities where the service requires full time employees, or ex- 
clusive station buildings, or exclusive space in buildings constructed 
primarily for other purposes, separate, but adequate, accommodations 
for white and colored races shall be provided, including comfort 
stations and rest rooms with running water. 

(e) In all towns and cities where commission agents are employed and 
the station is located in a place with another business and it is not 
practicable to provide separate adequate accommodations for the 
colored race, an additional "stop," or station for colored passengers 
shall be provided, and so marked, but both stations shall be con- 
venient to or be provided with rest and comfort facilities. 

(f ) That, to the end that the locations of such stations and the expenses 
of operation may be determined and agreed upon, the motor vehicle 
carriers operating to, from, or through each of the cities and towns 
with two or more carrier service, shall through their representatives 
meet within ninety days from the effective date of this order, except 
at such stations as are in satisfactory operation, and from time to 
time thereafter as necessity may require or as it may be specifically 
ordered, and select and obtain a location for such station in each of 
such cities and towns, and prorate the expenses of maintaining the 
said stations upon an equitable basis; and, failing to agree, the basis 
shall be upon the station's gross revenue from ticket sales, and each 
carrier shall contribute the amount so prorated immediately at the 
close of each month, or upon settlement the station manager may 
be authorized by the directors to deduct said amount, or if necessary 
may make arrangements to meet monthly obligations in advance. 
(Where stations have already been established under previous orders 
and are in operation, no action need be taken under this paragraph 
unless additional orders so require, or unless where the carriers 
discover the inadequacy, they may expand facilities voluntarily.) 

(g) No carrier, or carriers shall sell nor cause to be sold tickets in any 
city in which a Union Station is located under this or other orders 
in any place other than the Union Bus Station except by and with 
the consent of the Commissioner, and then such sales shall be under 
the direction of the Union Bus Station Manager, and both the expense 
and revenue of such sales shall be taken into the monthly account of 
the Union Station. All substations shall be under the control of the 
Manager for the localities in which they are located and tickets of 
all carriers shall be available at such substations. 

(h) Where a new intrastate carrier begins operation into any station, 
whose rights were not acquired by purchase of a carrier or carriers 
then occupying the premises, nor who was previously an operator 
into the station over other routes, said new carrier shall pay to the 



4U ,** ««MlD A** 1 

18 N". C. Utilities Commission 

management for the station use not more than 10 per cent of its 
gross receipts at such station, except where the operating cost of 
such station exceeds ten per cent (10%) of the total gross revenue 
in which case paragraph (f ) of this section shall apply. 

Any assessment of any such new operator for any portion of 
permanent improvements incurred prior to date of his beginning 
the station use shall be itemized and submitted with reasons there- 
for to the Commissioner for approval. Disapproval of such assess- 
ments shall invalidate them. 

(i) That the control of each Union Station shall be vested in a Board of 
Directors composed of one representative for each carrier holding 
an intrastate certificate authorizing operation into the station, and 
each director shall have one vote. In all matters of disagreement 
appeal may be to the Commissioner setting forth all the facts in 
writing to be considered by him, with copies for each carrier and 
person involved. 

(j) Nothing in this, nor any previous order shall be construed to permit 
any intrastate carrier, or carriers, to refuse to use any such Union 
Bus Station, nor to deny any intrastate carrier or carriers the use of 
any such station on the basis set out herein. 

(k) Nothing in this, nor any previous order, shall be construed to prevent 
the carriers which operate to, from, or through any town or city 
from jointly purchasing a location and jointly constructing a 
station building for their joint use as a Union Bus Station as herein 
provided; nor prevent their contracting with others to construct 
and, or operate, any given station. 

(1) All plans for new, re-conditioned, or re-modeled Union Station build- 
ings and premises shall be submitted to the Commissioner for 
approval. 

3. That it shall be the duty of the directors to elect, by a majority vote, a 
station manager and to instruct and direct him in the management of the 
station not in conflict with these and other rules and regulations that may be 
from time to time promulgated, and it shall be their duty to see that the rules 
set forth under "The Manager's Duties," with such amendments and additions 
as may be made thereto from time to time, are strictly adhered to. The man- 
ager may be removed by a majority vote of the Board, provided that no 
person shall be considered qualified for the position of Station Manager who 
is related by blood or marriage to any official of any carrier using his station, 
nor who has been discharged by any bus company for cause, nor who has 
been temporarily dismissed or discharged because of partial or unsatisfactory 
service rendered at other stations, and provided that such managers shall be 
subject to removal for violation of these rules or other reasonable cause in the 
discretion of the Commissioner or the Board of Directors; Provided, that 
the carriers may by unanimous agreement provide that one carrier may 
operate a station or that each may operate a station for a period in turn, and 
the other users contract to pay the operator not to exceed 10 per cent of their 
gross ticket sales, determined in the manner herein provided, for such 
service. 



General Orders 19 

4. That the Board of Directors, by a majority vote, shall fix all salaries and 
wages of station employees, authorize additions or improvements, increase 
or decrease the percentage to be assessed for the operation and maintenance 
of the station and handle all of the general business in connection therewith. 

5. That in the event that a vote of the majority of the Board of Directors 
upon any matter may seem unfair or detrimental to the interests of the 
minority, the latter may appeal the controversial subject to the North Carolina 
Utilities Commissioner for settlement. 

6. That all necessary help, including telephone operators, information 
clerks, porters, and ticket agents shall be employees of the station and no 
representative of any of the carriers shall, in any way, hold himself out as 
such to the public; provided, that in cities of more than thirty thousand 
population, the manager shall be given sufficient help so as to relieve him of 
performing any specific duty in order that he may be free to supervise the 
employees in their several activities. The qualification of ticket agents shall 
be the same as that provided for station managers in paragraph 3. 

7. Dispatchers may be assigned to stations only to assist the drivers in 
seeing that buses are properly loaded and depart on schedule time. Where 
quarters (or offices) for dispatchers are now provided in any station, same 
shall be eliminated upon remodeling or rebuilding, at least to the extent that 
entrance to such quarters may not be from the passenger waiting rooms. 
Dispatchers shall not perform any duty herein assigned to Station Managers 
or Agents. 

8. That employees of carriers, when off duty under the Wage and Hour Act, 
shall not loiter in the stations nor upon station premises. 

9. It shall be the duty of the Board of Directors to purchase for the station 
adequate insurance in approved insurance companies against the various 
hazards to which they are exposed, including, but not limited to, the 
following: 

Fidelity bonds on all employees who handle money, public liability on 
the station premises, fire coverage on all property in check or storage 
rooms, safe burglary, holdup, messenger, and workman's compensation. 

10. That the Board of Directors shall prescribe the form of the monthly 
financial statement to be prepared by the station manager and forwarded to 
the operating companies and may provide for periodical audits of the accounts 
of the station by an independent Certified Public Accountant satisfactory to 
all carriers affected, who may also make inspections of the books and records 
at such interims as the Directors may permit to see that the accounts are 
being kept in proper form. A copy of such audits shall be submitted to each 
member of the Board of Directors and this Commission. Joint audits may be 
requested by any carrier for any station with sufficient notice to permit all 
tenants to have their representatives participate. 

11. That the Board of Directors shall choose their executive officers (Chair- 
man and Secretary), and may designate someone not a member of the Board 
to act as Secretary. 

12. Where two or more carriers operate departing schedules from any sta- 
tion to a common destination and the loading parking space gives any prefer- 



20 JST. C. Utilities Commission 

ential advantage by virtue of accessibility to the station passenger exit, the 
station manager shall require daily alternation of positions while loading. 

13. That the Board of Directors shall provide a conspicuous "Union Bus 
Station" sign to be placed on the outside of such stations; shall allocate 
advertising space within the station for general advertising only, but no 
preferential, partial, or demand advertisements shall be placed therein; and 
placard advertising shall not be used on buses departing or arriving while on 
station premises. No advertising herein permitted shall be posted by anyone 
except the station manager. A file for printed schedules, fares, and advertising 
folders for all carriers shall be provided and shall be kept accessible to the 
public. 

14. That the duties of the station manager shall be: 

(a) He shall be in active control of the station operation, with complete 
supervision over all agents, baggage men, information clerks, 
porters, telephone operators, and all other station employees and it 
shall be his responsibility to employ and discharge. His primary 
responsibility shall be to see that the station is operated efficiently, 
economically and impartially, for the benefit of all carriers, and 
that all employees comply with the letter and the spirit of these 
rules to insure absolute strict neutrality in the sale of tickets and 
tendering of information to the patrons. He shall see that all sales 
of transportation are correctly reported at such times and in such 
manner, and upon such forms as are prescribed by each operating 
company, and that the funds which are received from the sale of 
transportation are deposited or transmitted in accordance with in- 
structions from the chief financial officer of the respective com- 
panies. All contracts between the operating company representatives 
and the station shall be through the manager. 

(b) No station employee shall enter into any sales or quota contest put 
on by any individual company, nor receive any gifts or bonuses. This 
provision, however, shall not exclude educational programs, which, 
however, must first be submitted to the station manager and Board 
of Directors for approval. 

(c) He shall hold meetings of the employees of the station, at regular 
intervals, jointly with traffic and operating representatives of the 
operating companies, for their instruction as to traffic and operating 
conditions of the various companies. These meetings shall be pre- 
sided over by the station manager and representatives from each 
company shall be invited to all meetings. Company representatives 
may have an opportunity to explain the features of their service so 
that the employees can, in turn, pass it on to prospective passengers 
requesting information about the services of their particular line 
when not repugnant to Paragraph (a). 

(d) He shall see that sub-rentals are collected promptly, that all com- 
pany accounts are in order, that the business of each operating 
company is handled in accordance with their instructions, that 
adequate supplies of tickets, schedules, pamphlets, etc., are requi- 
sitioned from the various operating companies, and keep, or have 
kept under his supervision, the records and accounts of the station 



G-eneral Orders 21 

in accordance with, the procedure set up by the directors as provided 
for in Rule No. 10. 

(e) He shall prepare and submit a budget to the Board of Directors for 
their approval, and when approved, he shall be responsible for the 
operation of the station within the limitations of the budget until 
another regular, or called meeting. The Commissioner may require 
the increasing of such budgets for repairs, sanitation or more serv- 
ice. He shall also prepare financial statements at the end of every 
month, setting forth the financial condition of the station and its 
income and expenses for the preceding month, together with the 
assessments to be paid by the respective companies, and forward one 
copy of this report to each carrier. 

(f) (1) He shall furnish at the station's expense blank forms, size not 
less than 5% x Z 1 /^ inches, with the following inscription for the use 
of passengers, who desire reissue of tickets: 

"To Union Bus Station Manager 

Request is hereby made to reissue ticket 

(Name of company on ticket) 

bought at so as to permit 

(Ticket Number) (Name of City) 

passenger 

(Here insert passenger's reason for requesting reissue) 

Was passenger solicited to make this request? 

Date 

(Signed Name of Passenger) 
(This signed request must be attached to cancelled ticket.)" 

(2) No ticket shall be reissued except when requested on above form. 

(3) When passenger cannot board issuing carriers bus out of station, 
ticket may be reissued so as to permit passenger to reach destina- 
tion over most convenient route but the return ticket must not be 
taken up and reissued at this time. 

(4) When returning passenger cannot take issuing carriers bus out of the 
station, ticket should be reissued for passenger to go to original 
issuing carriers nearest station on passenger's most direct return 
route and then over original issuing carrier's route, unless passenger 
requests another route on above form. 

(5) No carrier shall sell, nor cause or permit its agent to sell, tickets in 
any town or city from which it holds no franchise. 

(6) No carrier shall cause, nor permit the sale of its ticket for transporta- 
tion from point of sale on any except its own bus and over its fran- 
chise line. 

(7) No carrier shall issue a ticket diverting any passenger from a line 
on which his destination is located — not even when the line to desti- 
nation is the connecting carrier. 

15. That all complaints relative to the station operation shall be made to the 
station manager, in writing, and must be specific, giving the hour, date, em- 
ployee or employees involved, and brief summary of the specific matter com- 
plained of. The manager shall immediately send a copy of each such complaint 



22 Nl C. Utilities Commission 

to each member of the Board. He shall endeavor to correct the matter to the 
satisfaction of the complaining company, but should this be impossible, he 
shall call a meeting of the Board and if its finding sustains complainant, the 
matter shall be corrected by the Board. It shall, however, be the manager's 
duty to immediately dismiss any employee found guilty of any infraction of 
these rules. 

16. That monies of the station shall be deposited in a bank, or banks, desig- 
nated by the Board of Directors, and that the station manager shall be placed 
under adequate bond to protect the companies from any loss whatsoever. 

17. The Commissioner will determine what future carriers may use such 
stations, if and when such occasion arises. 

18. Carriers to Provide Tickets. All passenger carriers shall provide 
tickets at all agency stations and at such other places indicated on the pub- 
lished time schedules where satisfactory financial arrangement for handling 
can be made. 

19. Redemption of Tickets. All tickets when sold shall have the date of 
sale stamped thereon. Tickets when sold shall be redeemable for transporta- 
tion when presented to driver on a bus or shall be redeemable at their sale 
price in money by the company or its agent within twelve months after the 
sale date stamped thereon; if no date is stamped thereon at time of sale, 
such tickets shall be redeemable upon presentation at any time; Provided, 
that where tickets have been sold and baggage checked for transportation the 
carrier may deduct, at time of redemption, the usual amount, to reimburse 
it for baggae transfer. 

20. Tickets to be accepted by Connecting and Interconnecting Carriers. All 
carriers shall join in publishing an interline tariff and furnish such tariff to all 
agents on all carriers' lines and all tickets when sold by one carrier over 
another line or lines shall be accepted by the other carrier, or carriers, at the 
value of the ticket set forth in the interline tariff and the accepting carrier 
shall render statements to originating carrier, or seller, at regular intervals 
of not more than thirty days. 

21. Passenger to Determine Ticket Destination. At the time of the sale of 
an interline ticket the passenger shall determine the destination and routing 
called for on the ticket, provided such destination be on a known carrier's 
line and recorded in the joint or interline tariff and such interline ticket shall 
not be reissued en route except at the passenger's request written on the 
original ticket for the purpose of correcting a mistake in the routing in order 
to save time in reaching the destination sought. The passenger shall be given 
the advantage of a reduction of fare, if any, because of the change in routing 
and the reissuing carrier shall make the adjustment and note same on the 
original ticket for the information of the original seller who shall reimburse 
the reissuing carrier upon the receipt of the statement in which the original 
ticket, or a portion of the original ticket, is rendered. (No reissue of any 
ticket is contemplated which will require additional fare as reissues are 
permitted exclusively for saving time in reaching destination.) 

22. Passengers with Tickets Riding Competing Lines. Wherever two or 
more carriers operate from a common station or point where tickets are on 
sale to a common destination, either over the same or different routes, and a 



General Orders 23 

passenger purchases a ticket over one line but by mistake or misinformation 
takes a bus of the other or competing line, the carrier, operator, or driver of 
the bus on which such passenger is riding shall accept for transportation the 
ticket presented by the passenger and the carrier named on the ticket shall 
reimburse the transporting carrier, not in excess of the amount paid by the 
passenger, upon the presentation of such ticket. At agency stations where 
redemption of tickets is made by the agent, this adjustment should be made 
by the agent. 

23. (1) No exclusively interstate carrier shall use or be permitted the use 
of any Union Bus Station for picking up or delivering passengers, even though 
such passengers be for interstate travel only, unless such interstate carrier shall 
have the unanimous consent of all the intrastate franchise certificate holding 
carriers using such station filed in writing with the regularly elected, or acting, 
Union Bus Station Agent. 

(2) All intrastate carriers participating in the use of any station, where 
it is known that any exclusively interstate carrier is using, or may 
desire to use, any such union station, shall immediately transmit 
a letter in duplicate to the agent, or acting agent, advising their posi- 
tions with reference to the use of the station by a particular, or all 
exclusively interstate carriers, and the agent, or acting agent, shall 
within three days notify any officer, or agent, known to him to repre- 
sent any such exclusively interstate carrier, and so advise the carriers 
using his station and the Commission that such notice has been 
served. 

(3) That where such letters are filed by such carriers at such stations, 
the agent, or acting agent, shall keep a file thereof available to inspec- 
tion by all carriers. 

(4) That the agent, or acting agent, of any such station shall keep the 
Commissioner advised as to the result of such notice to any inter- 
state carrier in order that the Commission may comply with that 
provision of law which provides that the Commission shall "super- 
vise the operation of Union Passenger Stations in any manner neces- 
sary to promote harmony among the operators." 

24. Representatives of the Commission and of the Highway Commission 
authorized to make inspections under the provisions of the Act and these 
rules shall be provided with a Card of Identification. They shall have the right 
at any time to enter into or upon any station premises for the purposes of 
ascertaining whether or not the provisions of the law and these rules are 
being complied with. Willful refusal of any manager to permit such inspec- 
tion shall subject any such manager to removal. Inspectors shall report all 
irregularities under this rule to the Commission. 

25. A current time schedule of each carrier shall be posted in a conspicu- 
ous place, easily accessible for public inspection, at each station. 

26. All stations shall be kept and maintained in a sanitary and comfortable 
condition. 

27. Where quick lunch, or other restaurant facilities are maintained in any 
station waiting room, or adjacent thereto, where it is not separated from 
the passenger waiting rooms by fireproof partition, the agent at the station 



24 N". C. Utilities Commission 

expense shall provide a fire extinguisher, bearing the approval of the Fire 
Underwriters Association, which shall be kept in good operating condition at 
all times. 

28. Comfortable and clean seats shall be provided for passengers in all sta- 
tion waiting rooms. 

29. The carriers shall arrange for adequate telephone service in all agency 
and commission stations. 

30. No inflammable, explosive, poisonous or injurious gases or liquids, or 
loaded firearms shall be permitted to be stored as baggage in or upon the 
premises of any station. 

31. (1) Sample Baggage. Sample baggage shall consist of baggage for 
commercial as distinguished from personal use of the passenger, and shall be 
restricted to catalogues, models and samples of goods, wares or merchandise in 
trunks or other suitable containers and for use by the passenger presenting 
same for checking in making sales or other disposition of the goods repre- 
sented thereby, subject to Rules 30, 31(10), 31(11), and 31(12). 

(2) Personal Baggage. Personal baggage shall consist of wearing apparel, 
toilet articles (except liquid), and similar personal effects in actual 
use and necessary and appropriate for the wear, use, comfort and con- 
venience of the passenger for the purpose of the journey and not 
intended for other persons or for sale, subject to Rules 30, 31(10), 
31(11), and 31(12). 

(3) Baggage and Express Loading. The amount of baggage that may be 
carried in any motor vehicle with passengers shall not be greater than 
can be carried safely and conveniently without causing discomfort 
to passengers, nor shall it in any way be permitted to jeopardize the 
safety of operation. Doorways and aisles shall be kept clear of all 
obstruction. No baggage, trunk, crate, or other article, shall be 
carried on the running board of the left side. When the narrowest 
dimension of baggage loaded on top of passenger vehicles is twice 
the height of the guard rail, it shall be tied securely. Baggage too 
heavy for one man to load or unload may be refused when tendered 
at non-agency stations and stops or when tendered at agency stations 
destined for non-agency points, provided the motor vehicle carrier 
has previously posted a notice to that effect at stations and stops along 
the route. 

(4) Baggage Priority. When more baggage is presented to be trans- 
ported on any given schedule than can be carried conveniently on the 
vehicle, hand, personal, and sample baggage shall have priority over 
trunks and parcels, and the same shall have preference in the order 
named. 

(5) Baggage Checks to be Provided. Each passenger motor vehicle car- 
rier shall provide duplicate for baggage to and from all points on 
all routes covered by his franchise certificate. 

(6) Authority for Checking Baggage. Baggage checks shall be issued for 
baggage, other articles, or property upon presentation of valid trans- 
portation only when the owner of the baggage, other articles, or 
property, is also owner of the transportation and is a bona fide passen- 
ger over the same line to or beyond the destination of the baggage. 



General Orders 25 

(7) Baggage checked to Destination Called on Ticket. All baggage shall 
be checked to destination named on the passenger's ticket and when 
checked on an interline ticket shall be checked under the rules and 
regulations of the National Bus Traffic Association's Rule 8, excep- 
tion 6. 

(8) Baggage Storage. At all agency bus stations when arriving baggage 
is not immediately claimed by the passenger owner, the operator or 
driver shall deliver same to the Station Agent; and, if delivered to 
owner on same day of arrival, no storage charge shall he made; if 
not delivered to owner until the following day, or later, a storage 
charge may be made. A day shall be reckoned from Midnight to 
Midnight. 

(9) Delivery of Baggage. Motor vehicle operators, drivers, and station 
agents, shall not deliver baggage when checked except upon presenta- 
tion of the duplicate check, or until satisfactory identification has 
been established and a written record made of such identification 
signed by the person receiving such baggage and the person releasing 
same. In the absence of satisfactory identification, the agent, opera- 
tor, or driver, the claimant, and a third party may make a written 
appraisal of the baggage, other article, or property, and thereupon 
the claimant may make a satisfactory good-faith deposit, or bond, in 
the amount of the appraised value therefor, which shall be held in 
trust for a period of thirty days. If then no other claimant applies for 
such baggage, etc., the deposit shall be returned or the bond can- 
celled, as the case may be. 

(10) Baggage Containers. All baggage shall be inclosed in receptacles, 
such as trunks, valises, telescopes, suit cases, leather hat boxes or 
satchels provided with handles, locked or otherwise securely fastened, 
and made of material of sufficient strength and durability and of a 
quality to withstand rapid handling and piling incident to its trans- 
portation. 

(11) Articles Other Than Baggage. All articles not coming within the 
classifications of personal or sample baggage shall be charged for 
either by the piece or gross weight at the excess baggage rates. 

(12) When Operator or Driver May Refuse Baggage. Baggage containing 
money, jewelry, negotiable paper, liquids, glassware, perishable or 
fragile articles shall not be checked or received for transportation 
without a declared valuation; and, if baggage be checked or delivered 
for transportation by a passenger without making manifest of such 
contents and the value thereof, the carrier shall not be liable therefor 
and may reject entirely when baggage contains any of the articles 
enumerated in Rule 30 or is, in the opinion of the manager too heavy, 
too bulky, too fragile, or not in proper condition. 

(13) Baggage Allowance. Subject to the limitations in Rule 30 and the 
conditions of Rules 31(10) and 31(12), three pieces of hand baggage, 
not to exceed a total weight of one hundred pounds nor exceeding 
fifty ($50.00) dollars in value, shall be checked and carried free of 
charge for each adult passenger. Children traveling on less than adult 
fare shall be limited on the above basis in the proportion that the 
child's fare bears to the adult fare. No allowance shall be permitted 



26 M C. Utilities Commission 

on tickets purchased for the sole purpose of avoiding the payment of 
excess baggage. Circulars will be issued prescribing excess baggage 
rates. 

(14) Baggage checked C.O.D. Excess baggage shall not be transported 
charges collect on delivery, but the charges shall be paid in advance. 

(15) Failure to Check Baggage. Whenever any passenger discovers after 
boarding a bus that he has not checked his baggage, the driver shall 
take a memorandum and description thereof and the baggage shall 
be forwarded on the next available schedule under the same condi- 
tions as if accompanied by a passenger. 

32. That in event of the sale of a Franchise Certificate, or the sale of a por- 
tion of an operation, the purchaser shall have all rights and privileges enjoyed 
by the vendor in proportion to the purchase. 

33. That small operators shall be permitted to use such stations on a tenant 
basis, at not to exceed the cost provided in Paragraph (h) of Sec. 2, such 
tenants to be furnished full and impartial station facilities. 

34. That each company or individual carrier shall designate a director and 
an alternate director, and shall notify the Commissioner in writing of such 
designations and the stations to which each is assigned. The alternate director 
shall serve only in the enforced absence of the director. 

35. That all stations now organized and in operation shall continue as at 
present, subject to these rules. 

36. Plans of all remodeling old station buildings or quarters, or plans for 
new station buildings or quarters shall be submitted to the Commission for 
approval before contracts are let. 

37. A copy of these rules shall be kept posted by station managers in each 
station, accessible to the public. 

38. That all previous orders, rules and regulations relating to passenger bus 
stations are hereby rescinded with the effective date of this order hereinafter 
stated. 

Order Adopting and Making Above Rules Effective 

Under and by virtue of the provisions of Chapt. 136, P.L. 1927, and amend- 
ments thereto, known as "The North Carolina Motor Vehicle Carrier Act," and 
in the exercise of the powers conferred upon the Utilities Commissioner, it is 

Ordered, That the foregoing rules and regulations governing the establish- 
ment, supervision, control, and operation of passenger bus stations and Union 
Passenger Bus Stations, be and the same are hereby adopted and promulgated 
effective from and after 12:01 a.m., March 1, 1940, for general application to 
such service and are subject to such changes and modifications, permitted by 
law, as the Commissioner from time to time may determine to be advisable. 

This February 22, 1940. 

Stanley Winborne, 

Commissioner. 

R. O. Self, Chief Clerk, 

(SEAL) 

Docket No. 1. 



General Orders 27 

M. V. C. No. 58 
February 1, 1938. 

TO ALL MOTOR VEHICLE PASSENGER CARRIERS AND ALL MOTOR 
VEHICLE UNION STATION AGENTS 

Much complaint has been made to this office with reference to locked toilets 
in stations, therefore, this circular is to advise you that all such toilets should 
be unlocked immediately before the arrival of every bus schedule and remain 
unlocked until the departure. "Where schedules originate at a station, the 
toilets should remain unlocked 20 minutes before a departure and where sched- 
ules terminate at any station, the toilets should remain unlocked for a period 
of 15 minutes after the arrival. 

Care should be taken to keep all such places sanitary by painting, the use 
of deodorants, etc. 

All carriers are directed to require all agents to keep a copy of these require- 
ments posted for the information of employees of the stations and to direct 
the attention of the employees thereto. 

Respectfully, 

R. O. Self, Chief Clerk. 
Docket No. 1. 

M. V. C. Circular No. 59 
November 21, 1938. 

TO ALL MOTOR VEHICLE PASSENGER AND FREIGHT CARRIERS: 

License tags for the year 1939 will be ready for distribution on December 1, 
1938, and Description of Equipment forms are inclosed for your use in making 
application to this office for necessary authority to purchase them. "We are co- 
operating with the Department of Revenue in order to get your tags out before 
the rush. There is no reason why franchise carriers should have to come to 
Raleigh and stand in line day after day in order to get tags. 

Please prepare your Description of Equipment in quadruplicate form in 
order that you may secure your 1939 tags without unnecessary delay. When 
description has been filed with this office, certificate will be issued to the 
Commissioner of Revenue, authorizing him to sell tags for use on such 
vehicles as are completely and accurately described and for which we have 
necessary public liability and property damage insurance on file. Motor freight 
carriers are directed to furnish description for trailers as separate units. 

The new Motor Vehicle Carrier Act provides for the collection of a fee of 
twenty-five cents for each motor vehicle and trailer reregistered and a fee of 
one dollar for new registration; therefore, make your check for this fee pay- 
able to the North Carolina Utilities Commission. 

Passenger carriers should compute fees to be paid for license tags at ninety 
cents per hundred pounds on the weight of the vehicle empty, as shown in 
Item 5 of Description of Equipment; intrastate express and freight carriers 
should compute fees for intrastate trucks and trailers at the rate of sixty 
cents, and interstate carriers at thirty cents per hundred pounds for trucks 
and trailers based on manufacturer's gross weight plus manufacturer's rated 
carrying capacity as shown in Item 5 of Description of Equipment for each 
vehicle. For your information the law states: "Semi-Trailers licensed for use 
in connection with a truck-tractor, shall in no case be licensed for less gross 



28 Ni. C. Utilities Commission 

weight capacity than the truck-tractor with which it is to be operated." All 
checks for tag fees should be made payable to the Commissioner of Revenue. 
It is our information that the Department of Revenue will require evidence 
of title for each vehicle before selling tag (trailers excepted). (See Item 9 
on Description of Equipment.) 

In the past the Department of Revenue has been confused by franchise 
carriers operating more than one class of operation; therefore, if you desire 
to operate any vehicle for hire or in private business during the coming year, 
please advise me reasons for such additional operations with the number of 
vehicles which you contemplate using in these classifications as it is our 
intention to prohibit the operation of two or more classes by the same operator 
unless good cause is shown. 

Respectfully, 

R. 0. Self, Chief Clerk. 

Docket No. 1. 

M. V. C. No. 60 

TO ALL MOTOR VEHICLE PASSENGER CARRIERS AND FOR THE 
ESPECIAL ATTENTION OP ALL BAGGAGE AGENTS: 

A survey of the state with reference to the handling of passenger baggage 
by motor vehicle carriers reveals that the Baggage Agents' attention should be 
called to the Commission's rules with reference to baggage priority, as consid- 
erable baggage is being presented by passengers for transportation as well as a 
great volume of express packages, therefore, it is important that your agents 
should be made familiar with Rules 54, 55, 56 and 57, quoted below, as well as 
other rules relating to baggage: 

Rule 54. Sample Baggage. Sample baggage shall consist of baggage for 
commercial as distinguished from personal use of the passenger, and shall be 
restricted to catalogues, models and samples of goods, wares or merchandise in 
trunks or other suitable containers and for use by the passenger presenting 
same for checking in making sales or other disposition of the goods repre- 
sented thereby, subject to Rules 53, 62, 63, and 64. 

Rule 55. Personal Baggage. Personal baggage shall consist of wearing 
apparel, toilet articles (except liquid), and similar personal effects in actual 
use and necessary and appropriate for the wear, use, comfort and convenience 
of the passenger for the purpose of the journey and not intended for other 
persons or for sale, subject to Rules 53, 62, 63 and 64. 

Rule 56. Baggage and Express Loading. The amount of baggage that 
may be carried in any motor vehicle with passengers shall not be greater than 
can be carried safely and conveniently without causing discomfort to passen- 
gers, nor shall it in any way be permitted to jeopardize the safety of opera- 
tion. Doorways and aisles shall be kept clear of all obstruction. No baggage, 
trunk, crate, or other article, shall be carried on the running board of the 
left side. When the narrowest dimension of baggage loaded on top of passen- 
ger vehicles is twice the height of the guard rail, it shall be tied securely. 
Baggage too heavy for one man to load or unload may be refused when 
tendered at non-agency stations and stops or when tendered at agency sta- 
tions destined for non-agency points, provided the motor vehicle carrier has 
previously posted a notice to that effect at stations and stops along the route. 



General Orders 29 

Rule 57. Baggage Priority. When more baggage is presented to be trans- 
ported on any given schedule than can be carried conveniently on the vehicle, 
hand, personal, and sample baggage shall have priority over trunks and par- 
cels, and the same shall have preference in the order named. 

Please post this circular in your baggage rooms for the guidance of Agents. 
This December 2, 1938. 

Respectfully, 

R. 0. Self, Chief Clerk and Director 
of Motor Vehicle Transportation. 
Docket No. 1. 

M. V. C. No. 61 
December 10, 1938. 

TO ALL MOTOR VEHICLE PASSENGER CARRIERS: 

Item No. 1. It has been called to our attention that some drivers, probably 
from long-time habit, put their buses in motion after passengers have boarded 
before the passengers have taken seats. We believe that it will be well to 
instruct each driver to call out to passengers to be seated before he puts his 
bus in motion. This may avoid accidents during the congested holidays. 

Item No. 2. Your drivers also need instructions concerning stopping at 
railroad grade crossings. The law provides that all public service companies 
shall make these stops, and the recent disaster at Salt Lake City, Utah, has 
called it to our attention. To stop and open the door as is usually done, will 
apprehend approaching trains and avoid this disaster. 

Item No. 3. I mailed you recently copy of rules with reference to handling 
baggage. Inasmuch as many schedules have buses operating in more than one 
section it is important that baggage agents should be instructed to let per- 
sonal hand baggage go on the bus with its owner — that is, have priority over 
trunks and larger luggage, as several instances have occurred recently where 
the passenger on one bus would have his baggage following on another section, 
which causes consternation at connecting points. We know that this is diffi- 
cult to supervise and regulate, but it can be done and the experience will be 
of much value to you when and if we require, with all tickets sold, the designa- 
tion of a definite seat. Compliance with this caution will go a long ways to- 
wards satisfying the traveling public. 

Please post this where your drivers can read it. I am mailing copy to all 
Union Agency Stations for the use of Baggage Agents. 

Respectfully, 

R. 0. Self, Director of Motor Vehicle 
Transportation. 
Docket No. 1. 

M. V. C. No. 62 
August 8, 1939. 

TO ALL MOTOR VEHICLE PASSENGER CARRIERS: 

The Commission has relaxed its rule with reference to aisle seats to and 
including September 5, 1939, as follows: 

Carriers may continue to use aisle seats through Labor Day, provided such 
seats are not in use at the time of leaving station of origin of the schedules, and 



30 ~N. C. Utilities Commission 

let the aisle seats be exclusively for passengers picked up en route, and run 
double-headers on week-end schedules from Friday afternoon through Sunday 
whenever the main schedule bus has a capacity load exclusive of aisle seats, 
and that no passenger shall be taken on any bus at any station en route when 
no seat is available. 
By Order of the Commission: 

R. O. Self, 
Director of Motor Vehicle Transportation. 

Docket No. 1. 



CIRCULARS 

Supplement No. 4 to Circular No. 343 
(Cancels Circular No. 343) 

MAXIMUM FREIGHT RATES ON 
Paper as described in Circular No. 343, as amended 
Refer to Circular No. 343, as amended and cancel all rates. Apply class rates. 
By Order of the Commission: 
R. O. Self, Chief Clerk. 

Issued September 8, 1939. 
Effective October 8, 1939. 

Circular No. 362 

(Cancels Circular No. 230) 

MAXIMUM FREIGHT RATES ON 
Coal and Coke, Carload Minimum Weight, 30,000 Pounds 

In Cents Per Net Ton of 2,000 Pounds 
*Miles Rate * Miles Rate 



5 


f84 


10 


112 


15 


112 


20 


123 


25 


123 


30 


134 


35 


134 


40 


145 


45 


157 


50 


168 


60 


168 


70 


168 


80 


179 


90 


179 


00 


190 



120 


190 


140 


202 


160 


202 


180 


213 


190 


213 


200 


224 


220 


224 


240 


235 


260 


235 


280 


247 


290 


247 


300 


258 


320 


258 


340 


269 


360 


280 


380 


292 



By Order of the Commission: 
R. O. Self, Chief Clerk. 

Issued February 11, 1939. 
Effective March 1, 1939. 

Docket No. 191. 



* For any distance not listed above, use nearest greater distance that is listed, 
t When on coal, anthracite, rate will be 89 cents. 

For single line application only by all common carriers listed in Groups A, B, C, and D 
of Circular No. 361, Supplements to, and reissues thereof. 



32 1ST. C. Utilities Commission 

Circular No. 363 

FILING SUPPLEMENTS ON SUSPENSION MATTERS BY 
Railroad and Motor Vehicle Carriers 

1. Upon receipt of an order of suspension of any publication in part or in 
its entirety, the carrier or agent who filed such publication shall immediately 
file with the Commissioner a consecutively numbered supplement which must 
not bear an effective date, quoting in full the Commissioner's order of suspen- 
sion. Such supplement shall give specific reference by N.C.U.C. number or 
numbers to the tariff or tariffs, schedule or schedules or supplements thereto 
or revised pages where rates, fares, charges, classifications, rules, regulations 
or practices so continued in effect will be found. 

2. If prior to the filing of the supplement announcing suspension a carrier 
or its agent files a later supplement which contains as reissues, the matter sus- 
pended in the previous supplement, the suspension supplement required in this 
order shall also specifically cancel from the later supplement such reissued 
matter, and by amendment to the title page of said later supplement shall 
eliminate the cancellation of the suspended supplement when the latter is 
suspended in full, and when a supplement is suspended in part shall provide 
that such later supplement cancels such previous supplement, except portions 
under suspension. Tardiness in filing supplements announcing suspension 
may result in the rejection by the Commissioner of the supplement which 
cancels the suspended matter. 

3. When a schedule, tariff (or supplement) which is suspended in part is 
reissued, such reissue shall cancel the schedule, tariff (or supplement) con- 
taining the suspended matter "except portions under suspension in docket 

No " When a schedule or tariff which is suspended in part is reissued, 

such reissue shall also cancel the schedule or tariff containing the matter 
which is continued in effect by reason of the suspension. When a schedule or 
tariff, as to which a supplement is suspended in whole or in part, is reissued, 
the reissue shall cancel the schedule or tariff "except portions under suspen- 
sion in supplement No (or in item No of supplement No ) in 

Docket No " and shall reissue the matter which is continued in effect by 

the suspension. 

4. A suspended rate, fare, charge, classification, rule, regulation, or practice 
may not be changed or withdrawn or the effective date thereof further de- 
ferred except by order or special permission of the Commissioner, nor may any 
change be made in a rate, fare, charge, classification, rule, regulation, or prac- 
tice which is continued in effect as a result of such suspension except under 
order or special permission of the Commissioner. 

5. When the Commissioner vacates an order of suspension as of a date earlier 
than the date to which suspended, the carrier or agent who filed such sus- 
pended schedule, tariff, supplement or revised page may file with the Com- 
missioner, on not less than one day's notice, unless otherwise provided by the 
order, a supplement stating the date upon which, under authority of the vacat- 
ing order, the schedule, tariff, supplement, revised page, item, rate, fare, 
charge, classification, rule, regulation, or practice will become effective. 
Unless such supplement is filed naming an earlier date than the date to 



Circulars 33 

which suspended, the suspended matter will become effective on the date 
to which suspended. 

6. When an order which suspended a schedule or tariff in its entirety is 
vacated, the vacating supplement, if made effective on or before the date to 
which the schedule or tariff is suspended, may also include as reissues, changes 
or additions which have been lawfully established in supplements to the 
former schedule or tariff. If a new schedule or tariff has been filed during the 
period of suspension, cancelling the schedule or tariff proposed to be cancelled 
by the suspended schedule or tariff any changes or additions published in the 
new schedule or tariff which are not included in the suspended schedule or 
tariff may be included in the vacating supplement as reissued items, provided 
the vacating supplement also cancels such new schedule or tariff. No other 
matter may be included in vacating supplements. 

7. When a schedule or tariff containing suspended matter has been cancelled 
by a new schedule or tariff, except as to portions under suspension, and the 
Commissioner vacates its suspension order in its entirety effective on a date 
subsequent to the effective date of the new schedule or tariff, a supplement 
must be filed to the new schedule or tariff effective on not less than one day's 
notice, republishing and establishing the suspended matter and cancelling 
the matter which was effective during the period of suspension, also cancelling 
the matter under suspension in the former issue. Unless this is done, the mat- 
ter which was suspended will not become applicable as the effective matter in 
the new schedule or tariff remains in effect until cancelled. When the Com- 
missioner vacates its suspension order effective on a date prior to the effective 
date of the new schedule or tariff, a vacating supplement, as prescribed in this 
order, should be filed to the old schedule or tariff and a supplement should also 
be filed to the new schedule or tariff on not less than one day's notice, estab- 
lishing therein on the effective date thereof, matter which was under suspen- 
sion in the old schedule or tariff. 

8. When the Commissioner orders the cancellation of a schedule or tariff, 
supplement, revised page, item, rate, fare, charge, classification, rule, regula- 
tion, or practice theretofore suspended by it the cancellation shall be effected 
by filing with the Commissioner upon not less than one day's notice, unless 
otherwise provided by the order, a supplement stating the date upon which in 
accordance with the Commissioner's order said rate, fare, charge, classification, 
rule, regulation, or practice is cancelled; except that, when desired, such can- 
cellation may be accomplished in a new schedule or tariff cancelling the sched- 
ule or tariff containing the suspended matter. When an order of the Commis- 
sioner requires the cancellation of suspended matter on or before a date which 
is subsequent to the date to which suspended, carriers should endeavor to make 
the cancellation effective prior to the date to which the matter was suspended, 
in order to prevent the rates which have been found not justified from becom- 
ing effective. If the suspended matter is not cancelled on or before the date to 
which suspended, it will be necessary, when cancelling the suspended matter, 
to republish and reestablish the matter continued in force during the period of 
suspension. 

9. The provisions of this order relating to suspension, vacating, and cancella- 
tion supplements will also govern in connection with schedules or tariffs 



34 "N. C. Utilities Commission 

issued in loose-leaf form, except that such supplements must not contain rates, 
fares, charges, classifications, rules, regulations, or practices. All changes 
made in loose-leaf schedules or tariffs must be published on revised pages. 

By order of the Commissioner: 
R. 0. Self, Chief Clerk. 
Effective May 6, 1939. 

Circular No. 364 

(Cancels Circulars Nos. 296, 350, and 356) 

MAXIMUM FREIGHT RATES ON 

Chert; Clay gravel; Gravel; Limestone sludge; Oyster shell dust; Rubble 
stone; Sand (see Note 1 below) ; Slag (see Note 1 below) ; Stone, limestone, 
granite, or marble (see Note 1 below), broken, crushed, granulated, ground or 
pulverized; Stone dust or screenings (see Note 1 below); Marl; 

In straight or mixed carloads, minimum weight: in closed cars, 80,000 
pounds, and in open-top cars, 90,000 pounds, except when car is loaded to full 
cubical or visible capacity or to load limit, actual weight will govern (see 
Notes 2 and 3 below). 

Note 1. Rates will not apply on the following articles (whether or not 
broken, granulated, ground or pulverized) : 

Bituminous rock, bituminous asphalt rock, asphaltic limestone, phosphate 
rock, or gypsum. 

Open-hearth basic slag, or basic phosphate slag. 

Silica (silex), tripoli or silica sand. 

Slag granules. 

Slate. 

Stone chips or granules (roofing granules). 

Terrazzo material. 

Note 2. When actual weight is less than the applicable minimum, but car 
is loaded to full cubical or visible capacity to load limit, the bill of lading must 
be endorsed: 

"Car loaded to full visible capacity or to load limit" and Agent should 
confirm this fact and so endorse the waybill. 

Note 3. Where a carrier, for its own convenience, provides a car of greater 
capacity than that ordered by shipper, charges shall be assessed on basis of 
minimum weight fixed for car of capacity ordered; provided the shipment 
could have been loaded into car of the capacity ordered ; and provided further, 
that where a car of greater capacity is accepted by shipper and loaded beyond 
the loading capacity of the car ordered, the minimum weight shall be that of 
a car of stencilled capacity next above the actual weight of the shipment. 



Circulars 35 



In Cents Per Net Ton 

Applicable to common carriers in Groups A, B, and C of Circular No. 361, sup- 
plements thereto and successive issues thereof; also Louisville & Nashville Railroad 
and Abingdon Branch of the Norfolk & Western Railway. 



* Miles 


Single 


Joint 




Line 


Line 


10 


55 


65 


20 


61 


70 


30 


66 


75 


40 


77 


85 


60 


88 ' 


95 


80 


99 


105 


100 


110 


115 


125 


121 


125 


150 


132 


135 


175 


143 


143 


200 


149 


149 



"Miles 


Single 


Joint 




Line 


Line 


230 


154 


154 


260 


165 


165 


290 


176 


176 


320 


182 


182 


360 


185 


185 


400 


195 


195 


440 


205 


205 


480 


215 


215 


520 


220 


220 


560 


230 


230 


600 


240 


240 



For account of short or weak lines listed in Group D of Circular No. 361, 
supplements thereto and reissues thereof, rates shall be made by adding an 
arbitrary of twenty-five (25) cents per ton of 2,000 pounds to the rates above, 
which arbitrary shall accrue solely to said short or weak lines. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Issued May 9, 1939. 
Effective May 29, 1939. 

Docket No. 1545. 

Circular No. 365 

(Cancels Circular No. 364) 

MAXIMUM FREIGHT RATES ON 

Chert; Clay gravel; Gravel; Marl; Limestone sludge; Oyster shell dust; 
Rubble stone; Sand (see Note 1 below); Slag (see Note 1 below); Stone, 
limestone, granite, or marble (see Note 1 below), broken, crushed, granulated, 
ground or pulverized; Stone dust or screenings (see Note 1 below) ; 

In straight or mixed carloads, minimum weight: in closed cars, 80,000 
pounds, and in open-top cars, 90,000 pounds, except when car is loaded to full 
cubical or visible capacity or to marked capacity, actual weight will govern 
(see Notes 2 and 3 below). 

Note 1. Rates will not apply on the following articles (whether or not 
broken, granulated, ground or pulverized): 

Bituminous rock, bituminous asphalt rock, asphaltic limestone, asphaltic 

sandstone, phosphate rock, or gypsum; 
Open-hearth basic slag, or basic phosphate slag; 

Silica (silex), tripoli or silica sand, powdered or pulverized to such 
fineness that 90 per cent or more will pass through a 100-mesh screen 
(100 openings to the inch). 



* For any distance not listed above, use nearest greater distance that is listed. 



36 N*. C. Utilities Commission 

Slag granules; 

Slate; 

Stone chips or granules (roofing granules) ; or 

Terrazzo material. 
Note 2. When actual weight is less than the applicable minimum, but car is 
loaded to full cubical or visible capacity or to marked capacity, the bill of 
lading must be endorsed: "Car loaded to . . . (Insert here 'full visible,' 'cubical' 
or 'marked' as the case may be) capacity" and Agent should confirm this fact 
and so endorse the waybill. 

Note 3. Where a carrier, for its own convenience, provides a car of greater 
capacity than that ordered by shipper, charges shall be assessed on basis of 
minimum weight fixed for car of capacity ordered; provided the shipment 
could have been loaded into car of the capacity ordered ; and provided further, 
that where a car of greater capacity is accepted by shipper and loaded beyond 
the loading capacity of the car ordered, the minimum weight shall be that of a 
car of stenciled capacity next above the stenciled capacity of the car ordered. 

In Cents Per Ton of 2,000 Pounds 

Applicable to common carriers in Groups A, B and C of Circular No. 361, supple- 
ments thereto and successive issues thereof; also Louisville & Nashville Railroad 
and Abingdon Branch of the Norfolk & Western Railway. 



*Miles 


Single 


Joint 


*Miles 


Single 


Joint 




Line 


Line 




Line 


Line 


10 


55 


65 


230 


154 


154 


20 


61 


70 


260 


165 


165 


30 


66 


75 


290 


176 


176 


40 


77 


85 


320 


182 


182 


60 


88 


95 


360 


185 


185 


80 


99 


105 


400 


195 


195 


100 


110 


115 


440 


205 


205 


125 


121 


125 


480 


215 


215 


150 


132 


135 


520 


220 


220 


175 


143 


143 


560 


230 


230 


200 


149 


149 


600 


240 


240 



For account of short or weak lines listed in Group D of Circular No. 361, 
supplements thereto and reissues thereof, rates shall be made by adding an 
arbitrary of twenty-eight (28) cents per ton of 2,000 pounds to the rates above, 
which arbitrary shall accrue solely to said short or weak lines. 

By Order of the Commissioner, 
By R. O. Self, Chief Clerk. 
Issued May 20, 1939. 
Effective May 29, 1939. 

Docket No. 1545. 



For any distance not listed above, use nearest greater distance that is listed. 



Circulars 37 



Circular No. 366 

(Cancels Circular No. 365) 

MAXIMUM FREIGHT RATES ON 

Chert; Cinders; Clay gravel; Gravel; Limestone sludge; Marl; Oyster 
shell dust; Rubble stone; Sand (see Note 1 below) ; Slag (see Note 1 below) ; 
Stone, limestone, granite, or marble (see Note 1 below), broken, crushed, 
granulated, ground or pulverized; Stone dust or screenings (see Note 1 below) ; 

In straight or mixed carloads, minimum weight: in closed cars, 80,000 
pounds, and in open-top cars, 90,000 pounds, except when car is loaded to full 
cubical or visible capacity or to marked capacity, actual weight will govern 
(see Notes 2 and 3 below). 

Note 1. Rates will not apply on the following articles (whether or not 
broken, granulated, ground or pulverized): 

Bituminous rock, bituminous asphalt rock, asphaltic limestone, asphaltic 
sandstone, phosphate rock, or gypsum; 

Open-hearth basic slag, or basic phosphate slag; 

Silica (silex), tripoli or silica sand, powdered or pulverized to such fineness 
that 90 per cent or more will pass through a 100 mesh screen (100 openings 
to the inch). 

Slag granules ; 

Slate; 

Stone chips or granules (roofing granules) ; or 

Terrazzo material. 

Note 2. When actual weight is less than the applicable minimum, but car 
is loaded to full cubical or visible capacity or to marked capacity, the bill of 
lading must be endorsed: "Car loaded to . . . (Insert here 'full visible,' 
'cubical' or 'marked' as the case may be.) capacity" and Agent should confirm 
this fact and so endorse the waybill. 

Note 3. Where a carrier, for its own convenience, provides a car of greater 
capacity than that ordered by shipper, charges shall be assessed on basis of 
minimum weight fixed for car of capacity ordered; provided the shipment 
could have been loaded into car of the capacity ordered; and provided further, 
that where a car of greater capacity is accepted by shipper and loaded beyond 
the loading capacity of the car ordered, the minimum weight shall be that of a 
car of stencilled capacity next above the stencilled capacity of the car 
ordered. 



38 !N". C. Utilities Commission 



In Cents Per Ton of 2,000 Pounds 

Applicable to common carriers in Groups A, B, and C of Circular No. 361, sup- 
plements thereto and successive issues thereof, also Louisville & Nashville Railroad 
and Abingdon Eranch of the Norfolk & Western Railway. 



'Miles 


Single 


Joint 




Line 


Line 


10 


40 


50 


20 


45 


55 


30 


50 


60 


40 


65 


75 


50 


75 


85 


60 


88 


95 


80 


99 


105 


100 


110 


115 


125 


121 


125 


150 


132 


135 


175 


143 


143 


200 


149 


149 



* Miles 


Single 


Joint 




Line 


Line 


230 


154 


154 


260 


165 


165 


290 


176 


176 


320 


182 


182 


360 


185 


185 


400 


195 


195 


440 


205 


205 


480 


215 


215 


520 


220 


220 


560 


230 


230 


600 


240 


240 



For account of short or weak lines listed in Group D of Circular No. 361, 
supplements thereto and reissues thereof, rates shall be made by adding an 
arbitrary of twenty-eight (28) cents per ton of 2,000 pounds to the rates above, 
which arbitrary shall accrue solely to said short or weak lines. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Issued September 5, 1939. 
Effective September 29, 1939. 

Docket No. 1545. 

Circular No. 367 

(Cancels Circular No. 331) 

MAXIMUM FREIGHT RATES ON 

SPECIAL IRON AND STEEL ARTICLES, L.C.L. 

Subject to Packing Requirements of Southern Classification 

Rates published herein apply (except as otherwise provided) on the follow- 
ing articles: 
Agricultural Implement Parts, other than hand: 

Harrow spikes or teeth, curved. 

Harrow spikes or teeth, straight. 

Plow or cultivator parts, iron or steel, N.O. I.B.N. 
Anchors, iron or steel; building. 
Balls, crushing or grinding, iron or steel. 
Bands, shingle, iron or steel. 
Bars, grate, cast iron: 

Other than steam boiler. 

Steam boiler. 
Bins, or cribs, grain storage, iron or steel, K.D. 
Boiler parts, iron or steel: 



For any distance not listed above, use nearest greater distance that is listed. 



Circulars 39 

Braces. 

Doors, with or without frames. 

Flues or tubes. 

Heads (ends), unfinished, see note. 

Note. Rates apply only on heads (ends), not further finished than flanging 
or cutting or punching manholes. 

Plates. 
Bolts or nuts, N.O.I.B.N.: 

Iron or steel, galvanized or plain. 
Boxes, service: 

Water meter, cast iron, or cast iron and plate or sheet iron or steel combined. 
Cesspools, iron or steel body. 
Clevises, iron or steel. 

Concrete road joints, iron or steel, with or without iron or steel pins. 
Covers, meter box, cast iron. 

Culverts, iron or steel, cast, taken apart lengthwise. 
Dowel pins, iron or steel. 
Elevator guides, iron or steel. 
Elevator weights, iron or steel. 
Ferro-alloys : 

Ferro-manganese or ferro-phosphorus. 

Ferro-silicon. 
Forms or molds, concrete construction, N.O.I.B.N., iron or steel, K.D., or flat. 
Furnace parts, open hearth, iron or steel. 
Guy wire clamps, iron or steel. 
Hangers or stirrups, joist, iron or steel. 
Hoop iron or steel, cut to shape; punched or not punched, but not further 

finished. 
Iron or steel: 

Angles, N.O.I.B.N. 

Arches, floor (see Note). 

Note. Rates apply on floor arches used either for permanent installation 
or as forms for concrete construction. 
Band or hoop. 
Bands or rods, structural, weighing each 15 pounds or over, with heads, eyes, 

loops or screw threads, N.O.I.B.N. 

Note 1-A. Rates apply on drawn or rolled iron or steel bars, either square, 
round or otherwise shaped in the drawing or rolling process, also on such bars 
when bent, twisted or otherwise deformed, galvanized, ground, hammered, 
punched or sheared, but ratings will not apply if further work has been done. 
Bases or shoes, structural. 
Beams, N.O.I.B.N. 
Blanks, stampings or unfinished shapes, N.O.I.B.N., from plate or sheet iron or 

steel (see Note), in the rough (blanks, stampings or unfinished shapes in 

one piece, not further finished, except that they may be primed, leaded or 
tarred with one coat only, to preserve from rust), U.S. standard gauge 16 

or thicker. 

Note. Where blanks, stampings or shapes require no further work before 
becoming finished articles, or where they have been further finished than in 



40 M C. Utilities Commission 

the rough by mechanical process or by being bronzed, coppered, acid-coppered, 

enameled, galvanized, japanned, painted, plated, tinned or coated by any 

other process, the general or specific description for the article must be 

used; in the absence of such description, blanks, shapes or stampings of 

16 gauge or thicker will be subject to ratings for iron or steel hardware, 

N.O.I.B.N., page 210, Item 1, Southern Classification No. 56, supplements 

thereto or reissues thereof, and blanks, shapes or stampings of 17 gauge or 

thinner will be subject to the ratings for sheet iron or sheet steel ware, 

N.O.I.B.N., page 340, Item 12, Southern Classification No. 56, supplements 

thereto or reissues thereof. 

Braces or brackets, structural. 

Briquettes. 

Caps or capitals, structural. 

Casting, N.O.I.B.N. (See Notes 1 and 2): 

In the rough (castings as from the mold, except that fins, sinker heads and 
gates may be removed, the castings may be annealed, cleaned or tumbled, bolt 
holes may be made but not threaded, and castings may be primed, leaded or 
tarred with one coat only, to preserve from rust). 

Note 1. Where a casting in the rough constitutes an article for which a 
specific classification item or rate is provided when in an unfinished condition, 
or where a casting in the rough requires no further work before becoming a 
finished article for which a specific classification item or rate is provided, such 
specific classfiication item or rate must be used and the castings, N.O.I.B.N., 
rating will not apply. Where a casting that is coated or tooled or castings that 
are joined together constitute an article for which a specific classification 
item or rate is provided when in an unfinished condition, or where a casting 
that is coated or tooled or castings that are joined together require no further 
work before becoming a finished article, the general or specific classification 
item or rate provided for the article must be used and the castings, N.O.I.B.N., 
rating will not apply, and in the absence or such general or specific classifica- 
tion item or rate, the ratings for iron or steel hardware, N.O.I.B.N., page 210, 
Item 1, Southern Classification No. 56, supplements thereto or reissues thereof, 
will apply. 

Note 2. The castings, N.O.I.B.N., specifications and rates are not applicable 
to die castings. A die casting is subject to the general or specific classification 
item or rate provided for the article which it constitutes, and in the absence 
of such general or specific classification item or rate the rating for iron or steel 
hardware, N.O.I.B.N., page 210, Item 1, Southern Classification No. 56, supple- 
ments thereto or reissues thereof, will apply. 
Channels, N.O.I.B.N. 
Columns, N.O.I.B.N. 
Drippings, spillings or spittings. 
Foot walks, structural. 

Forgings, N.O.I.B.N., not including products of plate or sheet iron or steel 
(see Note) : 

In the rough (forgings as from the hammer or press. Such forgings may 
also be rough turned to one-eighth inch of finished size; bolt or center holes 
rough bored but not threaded; fins removed; tumbled; or primed, leaded or 
tarred with one coat only to preserve from rust). 



Circulars 41 

Note. Where a forging in the rough constituted an article for which a 
specific classification item or rate is provided when in an unfinished condition, 
or where a forging in the rough requires no further work before becoming a 
finished article for which a specific classification item or rate is provided, 
such specific classification item or rate must be used and the forgings, 
N.O.I.B.N., rates will not apply. Where a forging that is coated or tooled or 
where forgings that are joined together constitute an article for which a 
specific item or rate is provided when in an unfinished condition, or where a 
forging that is coated or tooled or where forgings that are joined together 
require no further work before becoming a finished article, the general or 
specific classification item or rate provided for the article must be used and 
the forgings, N.O.I.B.N., rates will not apply; and in the absence of such 
general or specific classification item or rate, the rating for iron or steel 
hardware, N.O.I. B.N., page 210, Item 1, Southern Classification No. 56, 
supplements thereto or reissues thereof, will apply. 
Girders, N.O.I.B.N. 

Lattice. 

Other than lattice. 
Inserts, structural. 
Lag bolts or lag screws. 
Lathing or ribbing, expanded metal. 
Lintels. 

Mill cinder or mill scale. 
Pebbles, grinding or polishing (pebble castings, bar cuttings or punchings, for 

grinding or polishing mills). 
Pig iron. 

Pins, bridge or drift. 
Plate, armor or deck. 
Plate, nail or tack. 
Plate or sheet, N.O.I.B.N., galvanized, painted or plain, corrugated or not 

corrugated. 
Plates, floor. 

Plates, structural, N.O.I.B.N. 
Posts, structural. 
Props (supports), mine. 
Rails, railway track, N.O.I.B.N. 
Rails, N.O.I.B.N. 
Rods, tie, structural, N.O.I.B.N. 
Separators, structural. 
Sills, door or window. 
Skelp. 

Spiegel-eisen ( spiegel-iron ) . 
Staple, ingot mold. 
Structural forms, N.O.I.B.N., fabricated from bars, plates or shapes, 3/16 

inch (U. S. Standard gauge No. 7 and over in thickness). 
Strutts, structural. 
Studding or furring. 
Studding sockets. 
Tees, N.O.I.B.N. 
Trusses. 



42 N". C. Utilities Commission 

Zees, N.O.I.B.N. 

Machinery: Power Transmission: 

Shafts or shafting, iron or steel, other than crank shafts, without cams, 
couplings, or fittings, not key-leaved nor key-seated. 
Manhole covers or frames, street, catch basins, catch basin covers or sewer 

inlets, iron or steel. 
Molds, pig iron, iron or steel. 

Nails or spikes, iron or steel, N.O.I.B.N., cement coated or galvanized or plain. 
Nut locks, iron or steel, N.O.I.B.N. 
Piling, iron or steel. 
Pipe, iron or steel, cast. 

Cast, with prepared joints (see Note). 

Note. Prepared joint consisting of lead, jute and iron wedges, inserted in 
bell or large end, securely held in place by wood blocks and not projecting 
beyond end of pipe. 

Cast, N.O.I.B.N. 
Pipe, iron or steel: 

Cement covered or cement lined. 
Conduit, wrought. 
Pipe or tubing, iron or steel. 
Plate or sheet, N.O.I.B.N.: 

U. S. Standard Gauge No. 7 or thicker, inside diameter 3 inches or less. 
U. S. Standard Gauge No. 16 or thicker, but not thicker than U. S. 

Standard Gauge No. 8, inside diameter 3 inches or less. 
U. S. Standard Gauge No. 22 or thicker, but not thicker than U. S. 
Standard Gauge No. 17, inside diameter 3 inches or less, side seams 
closed, not nested; or side seams closed nested. 
Wrought, not plate nor sheet (See Note). 

Note. Rates apply only on pipe or tubing made from skelp iron or steel or 
on seamless pipe or tubing made from billets or disks. 
Pipe Fittings: 

Hangers, iron or steel, N.O.I.B.N. 

Rings, iron or steel, for protecting threaded ends of iron or steel pipe. 
Supports, iron or steel, consisting of anchors, arches, brackets, chairs, rests, 
rolls or sleeves. 

Pipe Fittings, N.O.I.B.N., iron or steel, not plated. 
Plaster ground: 

Corner bead, corner bead clips, cove base, cove base fastenings, picture 
mouldings or wall grounds, iron or steel. 
Pole Line Construction Material: 
Iron or steel: 
Cross arms. 
Cross-arm braces. 
Ground rods. 
Guy Hooks, hub plates, pole gains, pole shims, pole protection strips, pot 

head brackets or strain plates. 
Insulator brackets, break arms or pins (See Note). 

Note. Insulator brackets, break arms or pins may have wooden heads, 
thimbles or tops attached. 



Circulars 43 

Pole or wall brackets. 

Pole steps. 
Poles, electric wire, iron or steel. 
Posts, lamp, iron or steel, without electric fixtures. 
Railway car or Locomotive Parts: 

Axles, iron or steel. 

Beams, brake, iron or steel. 

Bearings, bolster. 

Bolsters, car. 

Boxes, journal, iron or steel, without bearings. 

Brake shoes or brake shoe parts. 

Coupler knuckles. 

Couplers. 

Draft rigging. 

Ends, car, iron or steel. 

Floors, car, iron or steel. 

Journal box pedestal liners, iron or steel. 

Pins, coupling. 

Plates, center or spring, iron or steel. 

Sills, car, iron or steel. 

Springs, car or locomotive. 

Stakes, or stake packets, car, iron or steel. 

Tires, iron or steel. 

Truck frames or sides, iron or steel. 

Trucks, without motors. 

Underframes, car, iron or steel. 

Wheels, iron or steel. 

Yokes, coupler. 
Railway car parts, iron or steel, including railway car castings, forgings or 

stampings, N.O.I.B.N., in the rough (not put together and as from the mold, 

forge, press or stamp, except that fins, gates and sinker heads may be 

removed, articles may be cleaned or tumbled, bolt holes may be made but 

not threaded, castings may be annealed, and articles may be primed, leaded 

or tarred with one coat only to preserve from rust). 
Railway Track Material, iron or steel: 

Angle bars or plates; anti-rail creeper fastenings; base plates; crossings, 

cross-overs or crossing foundations; derailers with or without flags or tar- 
gets; draw bridge guides; foot guards; frogs, frog filler or filler blocks; 
guard rail clamps; guard rails; nut locks; rail braces, chairs, guards 
joints or yokes; reinforcing or splice bars; steel cross ties; steel cross tie 
fastenings; switches or switch points or stands; switch targets; tie bolts; 
tie plates or tie rods; track bolts, nuts or washers, or track spikes; track 
wedges; turnouts; welder bars. 
Rails, railway track. 
Reinforcement, concrete or plaster, iron or steel, viz: 

Wire mesh. 
Rivets, iron or steel, galvanized or plain. 
Rods, guy anchor, iron or steel. 
Roll protectors, iron or steel, taken apart. 



44 "N: C. Utilities Commission 

Rolls, rolling mill, iron or steel, not further finished than rough turned. 
Roofing, iron or steel, N.O.I.B.N. (See Note). 

Note. Each package may contain cleats, fasteners, nails or washers suf- 
ficient to lay it. 

Shoes, horse, mule or ox, iron or steel. 

Shoes, pile, iron or steel. 

Staples, iron or steel, N.O.I.B.N., galvanized or plain. 

Strip, steel, N.O.I.B.N. 

Sucker rod joints, iron or steel. 

Sucker rods, iron or steel. 

Tanks, iron steel, N.O.I.B.N., plate or sheet: 

U. S. Standard Gauge No. 17 or thinner, K.D. (See Note) 

U. S. Standard Gauge Nos. 3 to 16, inclusive, K.D. (See Note) 

U. S. Standard Gauge No. 2 or thicker, K.D. (See Note) 

Note. Rates apply on wooden pipe casing not to exceed five per cent of 

weight of the shipment for protecting tank feed piping from weather. 

Toe calks, iron or steel. 

Towers, N.O.I.B.N., iron or steel. 

Traps, grease or gas, iron or steel body. 

Turnbuckles or sleeve nuts, threaded, not insulated, iron or steel. 

Turntable girders, locomotive. 

Vehicle parts, tires, N.O.I.B.N., iron or steel. 

Washers or gaskets, iron or steel, galvanized or plain. 

"Weights, sash, iron or steel. 

Wire, iron or steel: 
Acid coppered, galvanized, painted, plain or tinned, N.O.I.B.N., including 

barbed wire (See Note). 
Note. When material exceeding three sixteenths (3/16) inch in thickness 

is shipped in straight lengths (not coiled nor on reels), ratings provided for 

iron or steel bars, N.O.I.B.N., will apply. 

Copper, brass or bronze coated, N.O.I.B.N., other than on spools. 

Wire strand, iron or steel, seven or fewer wires, twisted together. 

Wire, iron or steel, barbed, coppered, galvanized, painted, plain or tinned; 
fencing, wire, welded or woven, or poultry netting, in rolls; iron or steel 
wire fence stays and clamps; pipe, wrought iron, wire fence gates; wire 
fence stretchers, lifters and twisters; wire hoops; concrete reinforcements 
consisting of woven or welded wire or combination of bar iron and wire or 
twisted, corrugated, dented or otherwise deformed bar iron or steel; nails, 
including cement coated nails; wire staples; wire strand, iron or steel, 
seven (7) or fewer wires twisted together; iron or steel fence posts, with 
or without equipment of fittings; iron or steel hay bale ties, and spikes. 



Circulars 



45 



Rates In Cents Per 100 Pounds 



Miles 


Single 


Joint 


*Not Over 


Line 


Line 


5 


12 


•• — ••• 


10 


13 




15 


14 


19 


20 


15 


20 


25 


16 


21 


30 


17 


21 


35 


18 


21 


40 


18 


23 


45 


19 


23 


50 


20 


24 


55 


21 


25 


60 


21 


26 


65 


23 


26 


70 


23 


26 


75 


24 


28 


80 


25 


28 


85 


26 


29 


90 


26 


30 


95 


28 


31 


100 


28 


31 


115 


30 


31 


130 


31 


33 


145 


33 


33 


160 


35 


35 


175 


36 


36 


190 


38 


38 


205 


40 


40 


220 


41 


41 



of Circular No. 


361.— See Note 


Miles 


Single 


Joint 




Line 


Line 


235 


43 


43 


250 


45 


45 


265 


46 


46 


280 


48 


48 


295 


50 


50 


310 


51 


51 


325 


53 


53 


340 


54 


54 


355 


56 


56 


370 


58 


58 


385 


59 


59 


400 


61 


61 


415 


63 


63 


430 


64 


64 


445 


66 


66 


460 


68 


68 


475 


69 


69 


490 


71 


71 


505 


73 


73 


520 


74 


74 


540 


76 


76 


560 


78 


78 


580 


79 


79 


600 


81 


81 


620 


83 


83 


640 


84 


84 


660 


86 


86 



By Order of the Commission: 
R. O. Self, Clerk. 

Issued June 1, 1940. 
Effective June 1, 1940. 



Note. For account of short or weak lines listed in Group D of Circular No. 361, supple- 
ments thereto and reissues thereof, rates shall be made by adding an arbitrary of ten (10) 
cents per 100 pounds to the rates above, which arbitrary shall accrue solely to said short or 
weak lines. 

* For any figure not listed above, use nearest greater figure that is listed. 



DECISIONS AND ADJUSTMENTS OF COMPLAINTS 
Electric Light and Power Companies 

APPLICATION OF J. WILSON ALEXANDER, J. B. ALEXANDER AND 
J. C. WESTMORELAND FOR A CERTIFICATE OF PUBLIC CON- 
VENIENCE AND NECESSITY TO BUILD AN ELECTRIC DISTRI- 
BUTION SYSTEM. 

Order 

This cause arises upon the application of J. Wilson Alexander, J. B. 
Alexander and J. C. Westmoreland for a certificate of convenience and 
necessity to incorporate an electric distribution system outside of the corpo- 
rate limits of the municipality of Cornelius in Mecklenburg County, North 
Carolina for the purpose of serving themselves and two other neighbors. 

The applicants in this case live immediately outside of the corporate limits, 
and desire to obtain current from the Town of Cornelius, and wish to in- 
corporate the property in order to save themselves of liability which might 
accrue to them individually if not incorporated. They do not wish to sell 
electricity to any one else and the Town has advised them that it would read 
the meters and bill them directly, therefore, it appears that the granting of 
this application is in the interest of convenience and necessity because of 
the fact that it appears to be the only way that the applicants can secure 
current, therefore it is 

ORDERED that the petition be granted. 
This the twenty-fourth day of March, 1939. 

Stanley Winborne, 

Utilities Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1581. 

CAROLINA POWER & LIGHT COMPANY'S RULES AND REGULATIONS 
GOVERNING THE FURNISHING AND USE OF POWER SERVICE. 

Order 
It is hereby ordered, adjudged and decreed that the Carolina Power & Light 
Company's Rules and Regulations Governing the Furnishing and Use of 
Power Service, which rules and regulations have heretofore been filed with 
and approved by the Commission, be and the same are hereby amended by 
adding thereto a new paragraph, which shall be designated as Sub-section 
(e) of Section 10, and shall read as follows: 

"10 (e). When any contract is entered into between Company and 
Customer, superseding any former contract for electric power service, 
anything in either of such contracts to the contrary notwithstanding, the 
Company shall have the right to later discontinue power service to 
Customer under any such new contract on account of Customer's non- 



Decisions and Adjustments of Complaints 47 

payment of any account accrued under any previous contract for power 
service, provided Company shall give Customer ten days' notice of its 
intention so to do." 

This 20th day of March, 1939. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Chairman. 
Attest: 

R. O. Self, Clerk. 
Docket No. 1575. 

RATES OF CAROLINA POWER & LIGHT COMPANY TO ELECTRIC MEM- 
BERSHIP CORPORATIONS, AND OTHER SUCH NON-PROFIT ASSO- 
CIATIONS, FOR REDISTRIBUTION AND RE-SALE TO MEMBERS. 

Order 

Whereas, the North Carolina Utilities Commission has investigated the 
matter of a proper rate to be charged by the Carolina Power & Light Company 
against Electric Membership Corporations, and other such non-profit cooper- 
ative associations, for electric service for redistribution and resale to mem- 
bers of such corporations and associations; and 

Whereas, the Commission has given consideration to the rate schedule of 
Carolina Power & Light Company which is applicable for service to the South 
Carolina Rural Electrification Authority for redistribution and resale, which 
rates, together with the provision for a development period, appear to be fair 
and reasonable; and 

Whereas, the Commission has requested the Carolina Power & Light Com- 
pany to submit a written rate schedule in accordance with the rates, terms, 
and conditions under which such service is supplied in South Carolina, and 
the company having submitted a rate schedule, which is hereto attached 
designated as "Rate Classification 8 Schedule P-33": 

It is, therefore, ordered and adjudged: 

1. That the aforesaid rate schedule P-33 be and the same is hereby approved 
and ordered filed as the rate schedule of the Carolina Power & Light Com- 
pany applicable to electric service rendered by it to electric membership 
corporations, and other such non-profit cooperative associations, for redis- 
tribution members of any such corporation, company or association. 

2. The customers served under Schedule P-33 will be non-profit electric 
membership corporations or mutual companies or associations in rural areas 
wholly financed by the Rural Electrification Administration of Washington, 
D. C. and must experience a period of development. It is, therefore, ordered 
that during a period of not to exceed two years from the date service is first 
rendered, there shall be allowed by the Company to the Customer a twenty- 
three per cent discount from bills for electric service so that the net monthly 
billing shall be obtained by the application of the multiplier of seventy-seven 
one-hundredths (77/100) of the amount of the bill. 

3. In the event it should be determined at any time by any Court or by the 
North Carolina Utilities Commission that any customer of the Company, 
other than a non-profit rural electric membership corporation, mutual com- 



48 ~N. C. Utilities Commission 

pany or association wholly financed by the Rural Electrification Administra- 
tion of Washington, D. C, has been or is being unreasonably discriminated 
against on account of said Rate Classification 8 Schedule P-33, and the pro- 
visions of this order, then the Commission shall immediately fix a schedule 
of rates which shall not be unreasonably discriminatory against other cus- 
tomers and which shall thereafter be charged against such non-profit electric 
membership corporations, mutual companies or associations, for the service 
rendered to them by the Company. 

4. The Company shall not be required to render service under said Sched- 
ule P-33 if the customer receiving the service thereunder enters into com- 
petition with the company by serving, or contracting to serve, other custom- 
ers served by the company. 

Dated at Raleigh, North Carolina, this 4th day of May, 1939. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Chairman. 
Attest : 

R. 0. Self, Clerk. 
Docket No. 1604. 

APPLICATION OF CAROLINA POWER & LIGHT COMPANY FOR APPROV- 
AL OF A NEW RATE SCHEDULE DESIGNATED AS RATE CLASSIFI- 
CATION 8-A SCHEDULE P-32 APPLICABLE TO ELECTRIC SERVICE 
TO LOW RENT HOUSING PROJECTS CONSTRUCTED UNDER PUBLIC 
LAWS OF 1935, CHAPTER 456. 

Order 
Whereas, the Carolina Power & Light Company has filed an application for 
approval of a schedule of rates for electric service to be furnished to non- 
profit, low-rent housing projects to be constructed, owned and administered 
by public corporations, organized under authority of the State of North Caro- 
lina (Public Laws of North Carolina, 1935, Chapter 456) and has submitted 
for approval a proposed form of a rate schedule which will be the basis for a 
contract to be entered into with the Housing Authority of the City of Raleigh, 
in which contract will be incorporated the said schedule of rates and other 
terms and conditions pertaining to the delivery of service thereunder, copies 
of which schedule are attached hereto and by reference made a part hereof, 
and 

Whereas, the Commission has given attention to the following legal con- 
siderations which apply to the Raleigh Housing Authority: 

1. It owes its existence to a special legislative enactment. 

2. It has been held by the Supreme Court of North Carolina to be a 
public, non-profit corporation devoted to a public use: the elimination of 
slums by the substitution of safe and sanitary dwelling units for rental to 
the lowest income group. 

3. It has been given the power to obtain long-term, high percentage 
loans at low interest rates from the United States Housing Authority, an 
agency of the United States created to assist financially in a nation-wide 
decentralized program of slum clearance. 

4. It has been granted complete tax exemption by the Federal and 
State governments, the right of eminent domain, the right to receive 



Decisions and Adjustments of Complaints 49 

Federal and local capital grants, annual contributions and other aids to 
keep rents at the lowest possible level. 

5. Its occupants must be persons whose income does not exceed five 
times the rent plus the cost of utilities, which includes light, heat, water 
and cooking fuel. 

6. Its occupants must be persons who have previously been living under 
sub-standard housing conditions, and 

Whereas, the Commission has given attention to the following economic 
considerations: 

1. The proposed schedule provides for taking service at one point at 
primary distribution voltage. This appears to be the most satisfactory 
method of serving loads of this character. Thus the utility is saved such 
costs as individual meters, transformers for conversion to secondary 
voltage, primary and secondary distribution facilities, line and trans- 
former losses, meter reading, billing, collections, maintaining meters and 
services on the customer's premises. 

2. Cost of electric service to the tenant is pro-rated on the basis of total 
estimated annual cost of all dwelling units, and the tenant's reasonable 
use of service is not restricted by the prospect of an increased bill at the 
end of the month. 

3. The credit risk involved in serving low-rent housing projects is not 
significant since not only are the revenues from tenants available for the 
payment of operating expenses including the cost of energy purchased as 
in the case of private residential developments, but the annual contri- 
butions from the United States Housing Authority may also be used for 
this purpose. Losses in rent from non-occupancy or failure of tenants to 
pay rent would not be reflected in loss to the utility. 

4. The utility will acquire a large centralized load from a group of 
dwelling units, well equipped with electric utilization equipment, at 
presumably less cost to the utility for promotional and new business 
expense. Tenants in the low income group usually have large families, 
some members of which may be at home most of the time so that almost 
continual daily occupancy will result in more constant use of utility 
facilities. Under such circumstances, the Utility will thus acquire a 
stable load in low-rent housing projects from a group of people, some of 
whom do not now have any electric service whatsoever, while in the case 
of many of the tenants there existed no previous ability to pay the 
initial cost of electric refrigerators and electric ranges, and 

Whereas, it is an accepted principle that classification based upon reason- 
able differences of facts, conditions and circumstances results in no unlaw- 
ful discrimination, and 

Whereas, legal precedent supports reasonable classifications of service 
based, among other things, upon the quantity used, the time when used, the 
duration of use, the customer concentration, the cost and difficulty of supply- 
ing service, the regularity and continuity of service, the characteristics of the 
consumer's load and use of service, the furnishing of facilities by the con- 
sumer, and the differences in equipment used for receiving utility services, and 

Whereas, the facts, conditions and circumstances adduced in support of 
this application for approval of a separate rate classification amply justify 
approval of such application; 

It is, therefore, ordered that publicly owned and operated non-profit low- 
rent housing projects be and they hereby are placed in a separate rate 
classification, and the Carolina Power & Light Company is hereby authorized 






50 N". C. Utilities Commission 

to apply thereto the attached schedule of rates, provided, that the said sched- 
ule is approved subject to complaint and hearing before the Commission. 
Dated and signed at Raleigh, North Carolina, this fourth day of August, 1939. 

Stanley Winborne, 
North Carolina Utilities Commissioner. 
Attest : 

R. O. Self, Clerk. 
Docket No. 1663. 

EXHIBIT "A" 

Rate Classification — 8-A 

Service to Public Housing Projects for Redistribution 

Schedule P-32 
AVAILABILITY 

Available for the total electric requirements of any low-rent housing 
project contracting for not less than 150 Kw and constructed with public 
funds and operated and administered by a corporation or authority organized 
under the laws of the State of North Carolina (Public Laws of North Caro- 
lina 1935, Chapter 456) and amendments thereto where the funds used for 
such construction are obtained pursuant to the United States Housing Act of 
1937, as amended in 1938, when each dwelling unit is equipped with electric 
refrigerator and electric range. Service is at primary voltage and supplied 
through one meter at one point of delivery, with the Authority supplying, 
owning and maintaining its own distribution system within the boundaries of 
such project. Service is for the exclusive use within the project area, of the 
project and its tenants. Service hereunder shall not be resold and shall not be 
available for commercial or industrial enterprise, concessions or concerns 
located on or outside of the project site, nor for standby or supplemental use. 

Service supplied is 3 phase, approximately 60 cycles, approximately 2,300 
volts, or higher at Company's option. Each point of delivery shall be a 
separate unit for billing purposes. 

NET MONTHLY RATE 

$200.00 for the first 150 K.W. or less of Demand 

1.30 per K.W. for all additional K.W. of Demand, and 

1.20 per K.W.H. for the first 100 K.W.H. per K.W. of Demand 

0.85 per K.W.H. for all additional K.W.H. 

DEMAND 

The average K.W. supplied during the 15-minute period of maximum use 
which has occurred on each of three separate days during the month, but not 
less than the higher of the following: 

(1) 60 per cent of the highest Demand established for billing during the 
preceding 11 months. 

(2) 75 per cent of the minimum K.W. specified in the Agreement for 
Service, but in no event less than 150 K.W. 



Decisions and Adjustments of Complaints 51 

MONTHLY MINIMUM CHARGE 

The monthly minimum charge shall be the demand charge, provided, how- 
ever, that, during the period of partial occupancy immediately following the 
initial establishment of service hereunder, but in no event for longer than 
six months, the monthly minimum charge shall be $1.33 per K.W. of actual 
demand registered during the current billing month plus the energy charge. 

PAYMENT 

Bills are rendered at monthly intervals and are due and payable upon 
presentation. 

CONTRACT PERIOD 

Five years, or longer at Company's option. 
TERM DISCOUNT 

If this schedule forms a part of an Agreement for Service for a term of 
10 years or longer a discount of three (3) per cent shall be allowed from the 
monthly bill. 

Said discount shall not apply on bills rendered after earliest date contract 
may be terminated. 

Carolina Power & Light Company 

Docket No. 1663. 

IN THE MATTER OF THE AGREEMENT, DATED SEPTEMBER 6, 1939, 
BETWEEN CAROLINA POWER & LIGHT COMPANY AND CITY OF 
RALEIGH FOR WHITE WAY LIGHTING SERVICE. 

Order 

It appearing to the Commission that the White Way system of the City of 
Raleigh is lighted by the use of 4 ampere D.C. luminous arc lamps supported 
on ornamental brackets, which lamps are different from the lamps used in 
white way systems in other towns and cities of the state, and to which the 
White Way Lighting Schedules of the company, which are now on file with 
the Commission, are not applicable; 

And it appearing that the Company and the City of Raleigh have agreed 
upon a contract, dated September 6, 1939, extending for a period of ten (10) 
years from and after October 1, 1939, a duly executed copy of which has been 
filed with the Commission for its consideration and approval, in accordance 
with the provisions thereof; and 

It appearing that said contract provides a schedule of rates for service 
thereunder as follows: 

ANNUAL RATE 

Net Rate Per Lamp Per Year 
Burning Time: Each night from 30 minutes after 
sunset until: 
Type of Lamp 30 Minutes Before Midnight 

4 Ampere D. C. Sunrise 

Luminous Arc $49.00 $41.50 

And it appearing to the Commission, and the Commission having found as 
a fact, that the aforesaid schedule of rates, and the other terms and provisions 
of the contract are fair, reasonable and non-discriminatory: 

. 



52 N". C. Utilities Commission 

It is, therefore, ordered, adjudged and decreed that said contract, and the 
schedule of rates therein provided and made applicable to said service, he and 
the same are hereby, in all respects, ratified and approved. 

Done in the City of Raleigh, North Carolina, this 8th day of September, 
1939. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Chairman. 
Attest : 

R. 0. Sele, Clerk. 
Docket No. 1691. 

AMENDMENT TO CAROLINA POWER & LIGHT COMPANY'S SCHEDULE 
P-7, APPLICABLE TO TEXTILE MILLS. 

Order 

Whereas, Carolina Power & Light Company has applied to the Commission 
for an Order amending its Schedule P-7, applicable to textile mills, for the 
purpose of making said schedule applicable to contracts for electric service 
for periods of one year or more: 

It is, therefore, after full consideration, ordered, adjudged and decreed 
that said Schedule P-7 of Carolina Power & Light Company be amended by 
striking out the last paragraph thereof, reading as follows: 

"Contract Period. Not less than three years, provided that contracts for 
longer periods may be required when, in Company's judgment, circumstances 
justify." 

And by inserting in lieu thereof the following: 

"Contract Period. Not less than one year, provided that contracts for longer 
periods may be required when, in Company's judgment, circumstances 
justify." 

Done in the City of Raleigh this 24th day of October, 1939. 

NORTH CAROLINA UTILITIES COMMISION, 
By: Stanley Winborne, 

Commissioner. 
Attest: 

R. O. Self, Clerk. 
Docket No. 1729. 

WITHDRAWAL OF CERTAIN SCHEDULES OP CAROLINA POWER & 

LIGHT COMPANY. 

Order 

Whereas, Carolina Power & Light Company has applied to the Commission 
for the withdrawal of certain schedules, under which it now has no cus- 
tomers; and 

Whereas, it appears that there is no necessity for continuing such 
schedules: 

It is, therefore, ordered, adjudged and decreed that the Carolina Power & 
Light Company be and it is hereby allowed to withdraw and discontinue the 
following schedules: 



Decisions and Adjustments of Complaints 53 

Schedule BL Advertising — Ball Lighting. 

Schedule P-3 Power for Redistribution and Resale. 

Rider No. 1 to Schedule P-3. 

Schedule P-8 Power for Redistribution and Resale. 

Schedule C&H-3 Cooking and Heating — Large Industrial. 

Schedule C&H-4 Cooking and Heating — Large Industrial. 

Schedule WP-49 For Feldspar Grinding Mills. 

Schedule WP-41 Large Paper and Pulp Mills Over 1,500 KW. 

Schedule P-77 Clay Mines — Surplus Power. 

Done in the City of Raleigh, this 8th day of November, 1939. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Commissioner. 
Attest : 

R. 0. Self, Clerk. 
Docket No. 1743. 

WITHDRAWAL OF SCHEDULE P-95 OF CAROLINA POWER & LIGHT 
COMPANY. 

Order 

Whereas, Carolina Power & Light Company has applied to the Commission 
for the withdrawal of Schedule P-95, Intermittent Power for Textile Mills, 
under which it now has no customers; and 

Whereas, It appears that there is no necessity for continuing such schedule: 
It is, therefore, ordered, adjudged and decreed that the Carolina Power & 
Light Company be and it is hereby allowed to withdraw and discontinue 
Schedule P-95, Intermittent Power for Textile Mills. 

Done in the City of Raleigh, this 16th day of December, 1939. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Commissioner. 
Attest: 

R. O. Self, Clerk. 
Docket No. 1775. 

WITHDRAWAL OF SCHEDULE P-30 OF CAROLINA POWER & LIGHT 
COMPANY. 

Order 

Whereas, Carolina Power & Light Company has applied to the Commission 
for the withdrawal of Schedule P-30, Paper and Pulp Mills, under which it 
now has no customers; and 

Whereas, It appears that there is no necessity for continuing such schedule : 



54 N". C. Utilities Commission 

It is, therefore, ordered, adjudged and decreed that the Carolina Power & 
Light Company be and it is hereby allowed to withdraw and discontinue 
Schedule P-30, Paper and Pulp Mills. 

Done in the City of Raleigh, this 21st day of March, 1940. 

NORTH CAROLINA UTILITIES COMMISSION, 
By: Stanley Winborne, 

Commissioner. 
Attest : 

R. 0. Self, Clerk. 
Docket No. 1942. 

CAROLINA POWER & LIGHT COMPANY, APPLICATION OF, FOR AU- 
THORITY TO ISSUE AND SELL FIRST MORTGAGE BONDS AND FOR 
PERMISSION TO PLEDGE THE FAITH, CREDIT AND THE PROPERTY 
OF THE APPLICANT COMPANY. 

Order 

This day came Carolina Power & Light Company (hereinafter sometimes 
referred to as the "Company"), and presented its application (a) for author- 
ity to issue and sell $46,000,000 aggregate principal amount of the Company's 
First Mortgage Bonds, 3% per cent Series due 1965 (hereinafter sometimes 
referred to as the "Bonds"), for the purposes of enabling the Company to pay 
and discharge $7,500,000 principal amount of the Company's underlying and 
assumed Yadkin River Power Company First Mortgage Thirty- Year Five Per 
Cent Gold Bonds which mature on April 1, 1941 and to refund and discharge 
$38,500,000 principal amount of the Company's First and Refunding Mortgage 
Gold Bonds, 5 per cent Series of 1956, which it is proposed to call for 
redemption and (b) for permission to pledge the faith, credit and property 
of the Company and there were presented with said application and referred 
to and identified therein Exhibits marked A to C, inclusive; and upon the 
motion of W. H. Weatherspoon, its counsel: 

It is ordered, that said application and exhibits be, and they hereby are, 
filed and that this matter be, and it hereby is, docketed and set for immediate 
hearing by the Commission, upon said application and exhibits, and upon 
such statements and representations as the Company, through its repre- 
sentatives, may desire to submit for the consideration of the Commission; 
and 

Thereupon, this matter came on this day to be heard and considered upon 
said application, exhibits, statements and representations, and was argued by 
counsel; 

Upon consideration whereof, the Utilities Commission of North Carolina 
finds that the said Company is a North Carolina corporation, owning and 
operating in this state and in South Carolina, facilities for producing, gen- 
erating, transmitting, delivering, or furnishing electricity to the public for 
compensation; and that as such corporation the Company is subject to regu- 
lation by this Commission as to rates, service and security issues; that the 
proposed issue and sale of $46,000,000 principal amount of the Company's 
First Mortgage Bonds, 3% per cent Series due 1965, are for lawful objects 
within the corporate purposes of the Company, are compatible with the public 



Decisions and Adjustments of Complaints 55 

interest, are necessary or appropriate for or consistent with the proper per- 
formance by said Company of its service to the public as a public utility and 
will not impair the Company's ability to perform that service and are reason- 
ably necessary and appropriate for such purposes; and that the proposed 
Mortgage and Deed of Trust to be executed to Irving Trust Company and 
Frederick G. Herbst, as Trustees, for the purpose, among other things, of 
securing said issue of First Mortgage Bonds, is an appropriate instrument 
pledging the faith, credit and properties of the Company; in consideration 
whereof, the Commission is of the opinion that the prayers of said applica- 
tion should be granted and that the proposed transactions should be approved 
and authorized; 

It is, therefore, adjudged, ordered and decreed: 

That Carolina Power & Light Company be, and it hereby is authorized, 
empowered and permitted to: 

(1) Issue $46,000,000 aggregate principal amount of bonds under its 
Mortgage and Deed of Trust to be dated as of May 1, 1940, between the 
Company and Irving Trust Company and Frederick G. Herbst, as Trustees, a 
draft of which instrument is filed as Exhibit A in this proceeding; said bonds 
to be known as the Company's First Mortgage Bonds, 3% per cent Series due 
1965, to bear interest at the rate of 3% per cent per annum, payable semi- 
annually on May 1 and November 1 in each year, and to mature on May 1, 
1965, and to contain provisions more fully defined in said Mortgage and Deed 
of Trust; 

(2) Sell the said Bonds, or any part thereof, to eleven (11) insurance 
company purchasers at a price to said Company of not less than 103 y 2 per cent 
of the principal thereof plus accrued interest thereon to the date of closing, 
pursuant to the terms of purchase agreements which the Company proposes 
to enter into with said eleven insurance company purchasers in the form, or 
substantially in the form, filed in this proceeding as Exhibit B; 

(3) Create, execute and deliver the Company's Mortgage and Deed of Trust 
to Irving Trust Company and Frederick G. Herbst, as Trustees, to be dated as 
of May 1, 1940, conveying all, or substantially all, of the Company's mort- 
gageable properties and franchises (except as therein to be expressly ex- 
cepted) and pledging the faith, credit and property of the Company, among 
other things to secure said First Mortgage Bonds, 3% per cent Series due 
1965, of said Company; 

(4) Use and apply the net proceeds from the sale of said Bonds (after 
deduction of expenses), together with cash to be supplied by said Company, 
for the purposes of paying and discharging $7,500,000 principal amount of the 
Company's underlying and assumed Yadkin River Power Company First 
Mortgage Thirty-Year 5 Per Cent Gold Bonds which mature on April 1, 1941, 
and of refunding and discharging $38,500,000 principal amount of the Com- 
pany's First and Refunding Mortgage Gold Bonds, 5 per cent Series of 1956, 
which it proposes to call for redemption; 

Provided, however, that nothing in this order contained shall be construed 
to authorize the said Company to issue any notes or other evidences of in- 
debtedness (other than the said Bonds) that may be payable at periods of 
more than two years from the date thereof, unless authority therefor shall 
first have been obtained from this Commission; and 



56 N", 0. Utilities Commission 

Further provided, that nothing in this order contained shall be construed 
to obligate the State of North Carolina to pay or guarantee in any manner 
whatsoever any bonds authorized hereby, or be construed or represented as 
involving an expression of opinion on the part of this Commission as to the 
value of any such securities; and 

Further provided, that promptly after an order of the Securities and Ex- 
change Commission, pursuant to the Public Utility Holding Company Act of 
1935, relating to the issuance and sale of said Bonds hereinbefore authorized, 
a copy thereof shall be filed as a supplemental exhibit in this proceeding; and 

Further provided, that promptly after the execution of the Mortgage and 
Deed of Trust, to be dated as of May 1, 1940, hereinabove authorized, said 
Company shall file a copy of the executed form thereof as a supplemental 
exhibit in this proceeding; and 

Further provided, that promptly after the execution of the agree- 
ments with the eleven insurance company purchasers of said First Mortgage 
Bonds, 3% per cent Series due 1965, the Company shall file a copy of the 
executed form of each of said agreements as a supplemental exhibit in this 
proceeding; and 

Further provided, that on or before August 15, 1940, the Company shall file 
with this Commission its report showing the results of the transactions had 
pursuant to this order; and 

Further provided, that nothing in this order contained shall be construed 
as authorizing the issuance of any bonds, except the Company's First Mort- 
gage Bonds, 3% per cent Series due 1965, in a principal amount not exceeding 
$46,000,000 as authorized in paragraph (1) thereof; and 

Further provided, that the Clerk of this Commission shall furnish to the 
Company four (4) attested copies of the application herein and twenty (20) 
attested copies of this order without charge therefor, upon being furnished 
with the necessary copies by said Company; and 

Further provided, that this proceeding be, and the same hereby is, con- 
tinued on the docket of the Commission without day for the purpose of 
receiving the supplemental exhibits and the reports from the said Company 
herein required, and for any other action that may be found or deemed 
necessary or advisable; Provided, that nothing herein shall be construed to 
deprive this Commission of any of its regulatory authority under the law, 
notwithstanding any provision in the Mortgage and Deed of Trust. 

This the 14th day of May, 1940. 

Stanley Winborne, 

Utilities Commissioner. 
Frank W. Hanft, 

Associate Commissioner. 
F. L. Seely, 

Associate Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Docket No. 1977. 



Decisions and Adjustments of Complaints 57 

IN THE MATTER OP THE OPERATION OF THE RALEIGH BUS SYSTEM 
BY CAROLINA POWER AND LIGHT COMPANY OVER FIXED ROUTES. 

Order 

The petition of Carolina Power and Light Company was heard by the under- 
signed Utilities Commissioner of the State of North Carolina, on the 29th day 
of August, 1940, in which it seeks the Commissioner's approval of the estab- 
lishment of new routes for the operation of its motor buses within the City 
of Raleigh, with certain extensions outside of the corporate limits of the 
city, in accordance with a resolution adopted by the Commissioners of the 
City of Raleigh on the 27th day of August, 1940, a copy of which is attached 
to the petition in this proceeding, and it appearing to the Commission that the 
public transportation service rendered by petition will be improved and the 
interest of the public will be promoted by the establishment of said new 
routes; 

It is, therefore, Ordered, adjudged and decreed that the aforesaid reso- 
lution adopted by the Commissioners of the City of Raleigh on August 27, 
1940, a copy of which is attached to the petition in this proceeding, be, and 
the same is hereby approved, and petitioner is authorized and empowered to 
establish new routes for its bus service as set forth in said resolution. 

It is further ordered that the Anderson Heights-Country Club Route be 
established as an experiment, and the right is reserved and granted to 
petitioner to discontinue said route in the event that after ninety days oper- 
ation of buses over said route the patronage is insufficient to make the oper- 
ation thereof financially feasible in itself. 

Any orders of the Commissioner heretofore made establishing fixed routes 
for the operation of buses by petitioner, inconsistent with this order, are 
hereby superseded and abrogated to the extent of any such inconsistencies. 

This 29th day of August, 1930. 

Stanley Winborne, 

North Carolina Utilities Commissioner. 
Attest: 

R. 0. Self, Clerk. 
Docket No. 2055. 

CAROLINA POWER & LIGHT COMPANY 
RIDER TO SCHEDULES PERMITTING THE USE OF LIGHTING AND 
COVERING ADDITIONAL CHARGE FOR GASEOUS DISCHARGE LAMP 
INSTALLATIONS OF POOR POWER FACTOR. 

Order 

Whereas, The Carolina Power & Light Company, pursuant to negotiations 
with the Commission regarding gaseous discharge lighting has submitted and 
herewith files with the Commission a rider to rate schedules permitting the 
use of lighting service rendered to customers within the State of North Caro- 
lina; and, 

Whereas, it appears to the Commission that Neon, fluorescent, mercury 
vapor and other gaseous discharge lamps or lighting devices may come into 
more general use; that while this type of equipment has a high lighting 
efficiency it, nevertheless, has the characteristic of low power factor unless 



58 N". C. Utilities Commission 

equipped with corrective apparatus; that in using low power factor equip- 
ment the customer may overload his wiring circuits or else be compelled to 
install heavier wiring at an added expense; that the so-called wattless cur- 
rent taken by low power factor devices causes excessive voltage drops, 
adversely affects the voltage regulation on the customer's premises, tends to 
affect adversely the voltage regulation of the utility's distribution circuits and 
loads the circuits with current which does no work and does not produce 
revenue. It further appears that since the manufacturers of gaseous dis- 
charge lamps are in a position to supply power factor corrective devices or 
to supply auxiliaries having high power factor characteristics; and, 

Whereas, it is the opinion of the Commission that the use of high power 
factor equipment should be standard practice, and that if the customer using 
gaseous tube lighting does not install equipment having high power factor 
characteristics, the utility serving the customer should be allowed to make 
an additional charge; Now, therefore, 

It is ordered, adjudged and decreed that the rider to schedules permitting 
the use of lighting, entitled "Gaseous Discharge Lamp Installations," copy 
of which rider is hereto attached and filed with this Order, be and the same 
is hereby accepted, approved and made effective on bills rendered for such 
service on and after December 1, 1940. 

The aforesaid rider has been filed with and approved by the Commission 
without any condition or restriction whatsoever upon the power of the Com- 
mission to make further investigations and Orders with respect to any of the 
rate schedules of the Company. 

Dated at Raleigh, North Carolina, this 24 day of October, 1940. 

Stanley Winborne, 
Commissioner. 

By Order of the Commission. 

Attest: 

R. 0. Self, Clerk. 

Docket No. 2094. 

RIDER TO SCHEDULE PERMITTING THE USE OF LIGHTING GASEOUS 

DISCHARGE LAMP INSTALLATIONS. 
Application of Rider 

This Rider is applicable in conjunction with all schedules permitting the 
use of lighting when such lighting includes installation of Neon, fluorescent, 
mercury vapor or other types of gaseous discharge lamps with a power factor 
less than 90 per cent lagging, made, replaced, relocated or rearranged after 
December 1, 1940. 

Net Additional Charge 

In addition to the charge for service as provided in the applicable rate 
schedule, there will be a monthly fixed charge of $0.35 for each 100 volt 
amperes by which the volt ampere rating of any separately controlled gaseous 
discharge lamp or group of lamps numerically exceeds the respective wattage 
rating as obtained from information supplied by the manufacturer or by test. 

Effective on bills rendered on and after December 1, 1940, Carolina Power 
& Light Company. 

Approved: October 24, 1940. 

Docket No. 2094. 



Decisions and Adjustments of Complaints 59 

CAROLINA POWER & LIGHT COMPANY'S RIDER NO. 3 TO ITS RESI- 
DENTIAL SERVICE RATE CLASSIFICATION. 

Order 
To: Carolina Power & Light Company, Raleigh, North Carolina. 

Whereas, Carolina Power & Light Company, pursuant to negotiations with 
the Commission, has submitted to the Commission for its consideration and 
approval, a rider, designated as "Rider No. 3," to its Residential Service Rate 
Classification, which rider is to be applicable to load limited water heater 
service; and, 

Whereas, The Commission has considered the conditions and circumstances 
surrounding the service; the time of use thereof; the purpose for which used; 
the control of heating units so as to limit the demand upon the Company's 
plant facilities; that water heating under said Rider No. 3 will differ from 
other classes of residential service in that it will have both a good load factor 
and a good power factor; and 

Whereas, it appears to the Commission, and the Commission finds that said 
Rider No. 3 and the rate to be charged for service thereunder will not grant 
any unreasonable preference or advantage to any person or subject any person 
to any unreasonable prejudice or disadvantage and that said rate for service 
is reasonable and non-discriminatory; 

Now, Therefore, it is Ordered, Adjudged and Decreed that said rider, desig- 
nated as Rider No. 3 to the Residential Service Rate Classification of the 
Company, a copy of which is hereto attached and made a part of this Order, be 
and the same is hereby accepted, approved and made effective as provided 
therein, and the same shall be available to residential customers at the rates 
and upon the terms, conditions and provisions set forth therein. 

This Order shall not in any way affect or limit the right or power of the 
Commission to further investigate and order revisions with respect to the 
aforesaid rider and schedule, or with respect to any other schedules of said 
Company. 

Dated at Raleigh, North Carolina, this 29 day of October, 1940. 

By Order of the Commission: 

Stanley Winborne, 

Commissioner. 

Attest : 

R. 0. Self, Clerk. 

Docket No. 2100. 

INDUSTRIAL SERVICE, GENERAL SERVICE, AND OTHER RATE 
SCHEDULES OF CAROLINA POWER & LIGHT COMPANY 

Order 
To: Carolina Power & Light Company, Raleigh, North Carolina. 

Whereas, The Carolina Power & Light Company, pursuant to negotiations 
which the Commission has had with the Company regarding further reduc- 
tions in certain of its rates and charges for electric service, and in response 
to the request of the Commission, has submitted to and filed with the Com- 
mission certain new rate schedules to be applicable to the electric service 
rendered thereunder to the respective classified customers of the Company 
within the State of North Carolina; and 



60 ~N. C. Utilities Commission 

Whereas, The Commission, after full consideration of the said new rate 
schedules, is of the opinion that substantial reductions in rates, which will 
result in corresponding savings to customers, will be effected by said new 
schedules: 

Now, Therefore, it is Ordered, Adjudged and Decreed that the new rate 
schedules, copies of which are attached to and filed with this Order, be and 
the same are hereby accepted, approved and made effective as follows: 

1. Schedule P-40 for Small Industrial Service, superseding existing Sched- 
ule P-10 ; 

2. Schedule P-41 for Large Industrial Service, superseding existing Sched- 
ules P-ll, P-17, P-18, P-61 and P-74; also superseding Schedule P-81, 
except that present customers will be allowed to continue on Schedule 
P-81 until the expiration of their existing contracts, if they so desire; 

3. Schedule P-42 for High Load Factor Industrial Service; 

4. Schedule P-43 for Municipal Pumping Service, superseding existing 
Schedule P-23; 

5. ScheduleP-44 for Large Municipal Pumping Service, superseding ex- 
isting Schedule P-24; 

6. ScheduleP-45 for General Service, superseding existing Schedule P-25 
and Schedule P-26; and 

7. Schedule P-46 for Large General Service, superseding existing Schedule 
P-26. 

The aforesaid new schedules shall be made effective on bills rendered to 
customers on and after December 15, 1940. 

It is Further Ordered, Adjudged and Decreed that Schedule P-50 for Large 
Pulp and Paper Mills be, and the same is hereby allowed to be withdrawn as of 
the date of this Order, by the Carolina Power & Light Company, and that no 
service thereunder shall hereafter be offered, it appearing to the Commission 
that no customers are now being served by the Company under said schedule. 

The aforesaid new schedules shall supersede other schedules in accordance 
with this Order, and the aforesaid new schedules have been filed with and are 
approved by the Commission without any condition or restriction whatsoever 
upon the power of the Commission to make further investigations and orders 
with respect to any of the rate schedules of the Company. 

Dated at Raleigh, North Carolina, this 29 day of October, 1940. 

By Order of the Commission: 

Stanley Winborne, 

Commissioner. 
Attest : 

R. 0. Self, Clerk 
Docket No. 2099. 



Decisions and Adjustments of Complaints 61 

APPLICATION OF EAST TENNESSEE LIGHT AND POWER COMPANY 
FOR AN ORDER AND CERTIFICATE AUTHORIZING THE ISSUANCE 
OF $481,000.00 FIRST MORTGAGE AND REFUNDING BONDS UNDER 
A MORTGAGE AND TRUST DEED EXECUTED BY THE EAST TENNES- 
SEE LIGHT AND POWER COMPANY TO BANKERS TRUST COMPANY, 
TRUSTEE, DATED JUNE 1, 1929, TO BE USED AS COLLATERAL 
SECURITY WITH THE CHASE NATIONAL BANK OF THE CITY OF 
NEW YORK TO SECURE EAST TENNESSEE LIGHT AND POWER 
COMPANY'S PROMISSORY NOTE IN THE PRINCIPAL SUM OF $481,- 
000.00, WHICH BONDS ARE TO BE DATED JULY 1, 1939, TO BEAR 
INTEREST AT 3% PER CENT PER ANNUM AND TO MATURE ON 
JANUARY 1, 1943; AUTHORIZING EAST TENNESSEE LIGHT AND 
POWER COMPANY TO ISSUE ITS PROMISSORY NOTE IN THE PRIN- 
CIPAL SUM OF $481,000.00, BEARING 3% PER CENT INTEREST 
DATED JULY 1, 1939, AND MATURING JULY 1, 1942, AND TO USE 
THE PROCEEDS OF WHICH TO PAY $481,000.00, OF 5 PER CENT 
FIRST MORTGAGE 30-YEAR GOLD BONDS OF BRISTOL GAS AND 
ELECTRIC COMPANY, SECURED BY MORTGAGE TO MUNSEY TRUST 
COMPANY, FORMERLY UNITED STATES TRUST COMPANY, TRUS- 
TEE, DATED JULY 1, 1909, AND MATURING JULY 1, 1939. 



Docket No. 1385, Raleigh, North Carolina 
May 25, 1939 



Opinion and Order 

This day, upon the verified allegations in the application in the above styled 
matter, sworn statements, and the record at large, and upon hearing, this 
matter came on for consideration upon the application of East Tennessee Light 
and Power Company, a Virginia corporation, domesticated under the laws of 
North Carolina, for an order and certificate authorizing the petitioner, East 
Tennessee Light and Power Company, to issue $481,000.00 first mortgage 
and refunding bonds under a mortgage and trust deed executed by the East 
Tennessee Light and Power Company to Bankers Trust Company, Trustee, 
dated June 1, 1929, to be used as collateral security with the Chase National 
Bank of the City of New York to secure East Tennessee Light and Power 
Company's promissory note in the principal sum of $481,000.00, which bonds 
are to be dated July 1, 1939, to bear interest at 3% per cent per annum and to 
mature on January 1, 1943; and for order and certificate authorizing East 
Tennessee Light and Power Company to issue its promissory note in the prin- 
cipal sum of $481,000.00, bearing 3% per cent interest per annum, to be dated 
July 1, 1939, and to mature July 1, 1942, and to use the proceeds of which to 
pay $481,000.00 of 5 per cent first mortgage 30-year gold bonds of Bristol Gas 
and Electric Company, secured by mortgage to Munsey Trust Company, 
formerly United States Trust Company, Trustee, dated July 1, 1909, and 
maturing July 1, 1939. 

The Commission being advised in the premises and for the purpose of con- 
senting to, authorizing and granting the requests prayed for by petitioner in 
the prayer of the petitioner and set forth in the caption thereof, hereby orders, 
finds, adjudges and decrees as follows: 



62 !N". C. Utilities Commission 

(1) That petitioner, East Tennessee Light and Power Company is entitled 
to the relief prayed for in the petition. 

(2) That petitioner, East Tennessee Light and Power Company be, and it is 
hereby authorized to issue $481,000.00 first mortgage and refunding bonds to 
be used by it as collateral security with the Chase National Bank of the City 
of New York to secure its promissory note in the principal sum of $481,- 
000.00, which bonds are to be dated July 1, 1939, to bear interest at the rate 
of 3% per cent per annum, and to mature January 1, 1943. 

(3) That petitioner, East Tennessee Light and Power Company, be, and it 
is hereby authorized to issue its promissory note in the principal sum of 
$481,000.00, to be dated July 1, 1939, and to mature July 1, 1942, bearing 
interest at 3% per cent per annum, on which said promissory note the sum 
of $20,000.00 shall be payable semiannually on January 1st and July 1st of 
each year until the final maturity of the note on July 1, 1942, and to use the 
proceeds of which to pay $481,000.00 of 5 per cent first mortgage 30-year gold 
bonds of Bristol Gas and Electric Company, secured by mortgage to United 
States Trust Company, Trustee, dated July 1, 1909, and maturing July 1, 1939. 

Stanley Winbokne, 

Commissioner. 
Docket No. 1385. 

THE APPLICATION OF TENNESSEE EASTERN ELECTRIC COMPANY 
AND EAST TENNESSEE LIGHT AND POWER COMPANY, AND TEN- 
NESSEE REALTY COMPANY, FOR AN ORDER AND CERTIFICATE 
AUTHORIZING THE ISSUANCE OF $383,000.00 OF EAST TENNESSEE 
LIGHT AND POWER COMPANY 5 PER CENT FIRST MORTGAGE AND 
REFUNDING GOLD BONDS AND $945,900.00 OF TENNESSEE EASTERN 
ELECTRIC COMPANY 5 PER CENT REFUNDING MORTGAGE GOLD 
BONDS; AUTHORIZING THE ISSUANCE OF 16,900 SHARES OF $6.00 
CUMULATIVE DIVIDEND, NO PAR, VOTING, PREFERRED STOCK, 
BY THE EAST TENNESSEE LIGHT AND POWER COMPANY, 6,000 
SHARES OF WHICH WILL BE ISSUED FOR THE PURPOSE OF EX- 
CHANGING FOR THE SAME NUMBER OF SHARES OF THE 6 PER 
CENT CUMULATIVE DIVIDEND, VOTING, PREFERRED STOCK OF 
TENNESSEE EASTERN ELECTRIC COMPANY NOW OUTSTANDING, 
5,105 SHARES FOR THE PURPOSE OF EXCHANGING FOR THE SAME 
NUMBER OF SHARES OF $7.00 CUMULATIVE DIVIDEND, NO PAR, 
NON-VOTING, PREFERRED STOCK OF THE TENNESSEE EASTERN 
ELECTRIC COMPANY, AND 2,635 SHARES FOR THE PURPOSE OF 
EXCHANGING FOR THE SAME NUMBER OF SHARES OF $6.00 CUMU- 
LATIVE DIVIDEND, NO PAR, NON-VOTING, PREFERRED STOCK OF 
THE EAST TENNESSEE LIGHT AND POWER COMPANY NOW OUT- 
STANDING, 1,530 SHARES FOR THE PURPOSE OF REIMBURSING 
THE PRESENT HOLDERS OF THE 6 PER CENT CUMULATIVE DIVI- 
DEND, VOTING, PREFERRED STOCK OF THE TENNESSEE EASTERN 
ELECTRIC COMPANY FOR CUMULATIVE UNPAID DIVIDENDS THERE- 
ON TO JUNE 1, 1939, AND 1,520 SHARES FOR THE PURPOSE OF REIM- 
BURSING THE PRESENT HOLDERS OF $7.00 CUMULATIVE DIVI- 
DEND, NON-VOTING, NO PAR, PREFERRED STOCK OF THE TEN- 



Decisions and Adjustments of Complaints 63 

NESSEE EASTERN ELECTRIC COMPANY FOR CUMULATED UNPAID 
PREFERRED DIVIDENDS TO JUNE 1, 1938; AUTHORIZING THE 
CONSOLIDATION OR MERGER OF THE PHYSICAL PROPERTIES 
OF THE TENNESSEE EASTERN ELECTRIC COMPANY WITH THE 
EAST TENNESSEE LIGHT AND POWER COMPANY; AND AUTHOR- 
IZING THE CONSOLIDATION AND MERGER OF THE PHYSICAL 
PROPERTIES OF THE TENNESSEE REALTY COMPANY, A TENNES- 
SEE CORPORATION, WITH THE PHYSICAL PROPERTIES OF THE 
EAST TENNESSEE LIGHT AND POWER COMPANY. 



Docket No. 0, Raleigh, North Carolina 
August 10, 1938 






Opinion and Order 

This day, upon the verified allegations in the application in the above styled 
matter, sworn statements and exhibits filed in connection therewith, and other 
documentary and oral evidence submitted, and upon hearing, this matter came 
on for consideration upon the application of Tennessee Eastern Electric Com- 
pany, a Massachusetts corporation, domesticated under the laws of Tennessee, 
East Tennessee Light and Power Company, a Virginia corporation, domesti- 
cated under the laws of North Carolina, and Tennessee Realty Company, a 
Tennessee corporation, for an order and certificate authorizing the issuance of 
$383,000.00 of East Tennessee Light and Power Company 5 per cent first 
mortgage and refunding bonds, and $945,900.00 of Tennessee Eastern Electric 
Company 5 per cent refunding mortgage gold bonds, and for an order and 
certificate authorizing the issuance of 16,790 shares of $6.00 cumulative divi- 
dend, no par, voting preferred stock, by the East Tennessee Light and Power 
Company for the purpose or purposes stated in the caption hereof, and for an 
order and certificate authorizing the consolidation or merger of the physical 
properties of Tennessee Eastern Electric Company with the East Tennessee 
Light and Power Company and a consolidation or merger of the physical 
properties of Tennessee Realty Company with the physical properties of the 
East Tennessee Light and Power Company. 

The Commission being advised in the premises and for the purpose of enter- 
ing an order in said matter consenting to and authorizing the issuance of 
securities hereinafter set out by the Tennessee Eastern Electric Company and 
the East Tennessee Light and Power Company and the consolidation or merger 
of the physical properties of the Tennessee Eastern Electric Company with the 
East Tennessee Light and Power Company and the consolidation or merger 
of the physical properties of the Tennessee Realty Company with the physical 
properties of East Tennessee Light and Power Company, finds as follows: 

That the properties of the Tennessee Eastern Electric Company and the 
East Tennessee Light and Power Company have a value sufficient to warrant 
this Commission to authorize said companies to issue securities as hereinafter 
set out; that the Railroad and Public Utilities Commission of Tennessee by 
order dated May 15, 1929, fixed the combined value of the properties of the 
Tennessee Eastern Electric Company, East Tennessee Light and Power Com- 
pany and Johnson City Traction Company at a sum of $6,800,000.00 of which 
amount $242,651.00 represented the value of the properties of the Johnson 



64 ~N. C. Utilities Commission 

City Traction Company, which has since been abandoned; that since May 15, 
1929, the Tennessee Eastern Electric Company and East Tennessee Light and 
Power Company have added improvements, additions and betterments to their 
respective physical properties in a total sum of $1,903,799.17. From this sum 
should be deducted $242,651.00 representing the value of the Johnson City 
Traction Company property which has been abandoned, leaving a net increase 
of the value of the properties above the $6,800,000.00 established as of 
May 15, 1929, of $1,661,148.17. 

Petitioners are indebted to the Cities Service Power and Light Company 
for borrowed money, evidenced by demand notes, in the sum of $1,279,847.19. 

That petitioners, Tennessee Eastern Electric Company and East Tennessee 
Light and Power Company, are now and have been for a number of years, 
under the same management, with properties commingled and physically inter- 
connected; that it is in the public interest to merge or consolidate the physical 
properties of the East Tennessee Light and Power Company. 

That the Tennessee Realty Company is owned by the East Tennessee Light 
and Power Company and its assets consist of property acquired incidental to 
the operation of the East Tennessee Light and Power Company and the Tennes- 
see Eastern Electric Company, and it is in the public interest and advisable to 
merge or consolidate the physical properties of Tennessee Realty Company 
with the physical properties of East Tennessee Light and Power Company. 

That the application of the petitioners, Tennessee Eastern Electric Company 
and East Tennessee Light and Power Company, for an order authorizing the 
issuance of the Securities set out in the caption hereof and hereinafter set out, 
should be granted, and the application for the merger or consolidation of the 
physical properties of the Tennessee Eastern Electric Company with the physi- 
cal properties of East Tennessee Light and Power Company and the merger 
or consolidation of the physical properties of Tennessee Realty Company with 
the physical properties of East Tennessee Light and Power Company should 
be granted; 

It is therefore ordered that said East Tennessee Light and Power Company 
be, and it is hereby authorized to issue $383,000.00 of 5 per cent first mortgage 
and refunding gold bonds and to sell the same at not less than 90 per cent of 
the principal amount thereof and the Tennessee Eastern Electric Company be, 
and it is hereby authorized to issue $945,900.00 of 5 per cent first mortgage and 
refunding gold bonds, and to sell the same at not less than 90 per cent of the 
principal amount thereof; that the East Tennessee Light and Power Company 
is hereby authorized to issue 16,790 shares of $6.00 cumulative dividend, no 
par, voting, preferred stock, 6,000 shares of which will be issued for the 
purpose of exchanging for the same number of shares of 6 per cent cumula- 
tive dividend voting, preferred stock of Tennessee Eastern Electric Company 
now outstanding, 5,105 shares for the purpose of exchanging for the same 
number of shares of $7.00 cumulative dividend, no par, non-voting, preferred 
stock of Tennessee Eastern Electric Company and 2,635 shares for the purpose 
of exchanging for the same number of shares of $6.00 cumulative dividend, no 
par, non-voting preferred stock of the East Tennessee Light and Power Com- 
pany now outstanding, 1,530 shares for the purpose of reimbursing the present 
holders of the 6 per cent cumulative dividend, voting, preferred stock of the 
Tennessee Eastern Electric Company for cumulated and unpaid dividends 
thereon to June 1, 1938, and 1,520 shares for the purpose of reimbursing the 



Decisions and Adjustments of Complaints 65 

present holders of $7.00 cumulative dividend, non-voting, no par, preferred 
stock of Tennessee Eastern Electric Company for cumulated unpaid preferred 
dividends to June 1, 1938. 

It is further ordered that the Tennessee Eastern Electric Company be, and 
it is hereby authorized to consolidate or merge its physical properties with 
the East Tennessee Light and Power Company. 

It is further ordered that the Tennessee Realty Company be, and it is hereby 
authorized to consolidate or merge its physical properties with the physical 
properties of the East Tennessee Light and Power Company. 

It is further ordered that the East Tennessee Light and Power Company 
be and it is hereby authorized to acquire, operate and hold all of the proper- 
ties and assets of the Tennessee Eastern Electric Company, and all of the 
properties and assets of the Tennessee Realty Company, and to assume all the 
liabilities of said companies, and said companies so to be acquired, be and 
they are hereby each authorized to sell, transfer and convey all of their 
property, rights, business and other assets to the East Tennessee Light and 
Power Company. 

It is further ordered that the authorization for the issuance of securities 
herein set out and for the mergers herein provided for, is subject to the 
necessary approval of the respective stockholders and directors of the Tennes- 
see Eastern Electric Company, East Tennessee Light and Power Company 
and Tennessee Realty Company, in conformity with their respective charters, 
or the statutes of the States which created them, respectively, and conditioned 
upon the acceptance by the holders of the 6 per cent cumulative, dividend, vot- 
ing, preferred stock of Tennessee Eastern Electric Company and the 7 
per cent cumulative dividend, no par, non-voting, preferred stock of Tennessee 
Eastern Electric Company, and of the 6 per cent cumulative, voting, no par, 
preferred stock of East Tennessee Light and Power Company, and subject to 
the approval of the respective towns, municipalities and cities served by the 
petitioner, Tennessee Eastern Electric Company, of the transfers of the 
franchises from the Tennessee Eastern Electric Company to the East Tennes- 
see Light and Power Company. 

It is further ordered that the issue, or proposed issue, by the East Tennessee 
Light and Power Company of the said $383,000.00 5 per cent First Mortgage 
and Refunding Gold Bonds and the sale thereof, and the application of the 
proceeds thereof to the payment due by the East Tennessee Light and Power 
Company to the Cities Service Power and Light Company is for the lawful 
refunding of its obligations and reasonably necessary to carry out said pur- 
pose; that the issue, or proposed issue, by Tennessee Eastern Electric Com- 
pany of the said $945,900.00 5 per cent First Mortgage and Refunding Gold 
Bonds and the sale thereof, and the application of the proceeds thereof to 
the payment of the indebtedness due to the said Cities Service Power and 
Light Company is for the lawful refunding of obligations due the said Cities 
Service Power and Light Company and reasonably necessary to carry out said 
purpose; that so much of said 16,790 shares of $6 Cumulative Dividend Voting 
Preferred Stock in exchange for shares of the Tennessee Eastern Company 
represents a fair and equitable exchange and is reasonably necessary to carry 
out the purpose of acquiring the shares of Tennessee Eastern Company; and 
that the issuance of shares to the extent proposed for the purpose of reim- 



66 N". C. Utilities Commission 

bursing the present holders of 6 per cent Cumulative Dividend Voting Pre- 
ferred Stock of the Tennessee Eastern Company and the $7 Cumulative Divi- 
dend No Par Voting Stock is a fair and reasonable method of providing for the 
retirement of the indebtedness represented by said accumulated unpaid divi- 
dends; that the merger and consolidation of the physical properties of the 
Tennessee Eastern Company with the properties of the East Tennessee Com- 
pany by means of a voluntary dissolution of the former company which is to 
be accomplished following the acquisition by the East Tennessee Company of 
all the stock of the Tennessee Eastern Company, and in such dissolution the 
transfer of its properties to the East Tennessee Company in lieu of or as a 
liquidating dividend, are reasonable and appropriate steps in the accomplish- 
ment of the purposes and objects herein set forth; that the acquisition of 
the entire property and assets of the Realty Company by the East Tennessee 
Company which will assume all of the liabilities of the Realty Company is 
reasonably necessary to carry out the purposes set forth in this application. 

Since less than $175,000.00 of the total invested capital involved in the 
consolidation plan and a very small percentage of the issue of stocks and bonds 
involved in this proceeding is subject to the jurisdiction of this Commission, 
the findings of fact in this order are presumed to be correct, and are based 
upon the stipulations contained in the application and exhibits, without 
verification by this Commission, and shall become effective concurrently and 
in such proportion of said amounts, and to such extent, as the same may be 
approved and promulgated by the Railroad and Public Utilities Commission 
of the State of Tennessee. 

This the Tenth Day of August, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission. 
R. O. Self, Chief Clerk. 

(SEAL) 
(SEAL) 

NORTH CAROLINA UTILITIES COMMISSION 

I, R. O. Self, Chief Clerk of the North Carolina Utilities Commission, do 
hereby certify the foregoing and attached (seven) sheets to be a true copy 
from the records of this office. 

In Witness Whereof I have hereunto set my hand and affixed the official 
seal of the Commission. 

Done in office at Raleigh, this tenth day of August in the year of our Lord 
1938. 

R. O. Self, Chief Clerk. 

(SEAL) 



Decisions and Adjustments of Complaints 67 

APPLICATION OF TENNESSEE EASTERN ELECTRIC COMPANY AND 
EAST TENNESSEE LIGHT AND POWER COMPANY, AND TENNESSEE 
REALTY COMPANY, FOR AN ORDER AND CERTIFICATE AUTHOR- 
IZING THE ISSUANCE OF $383,000.00 OF EAST TENNESSEE LIGHT 
AND POWER COMPANY 5 PER CENT FIRST MORTGAGE AND RE- 
FUNDING GOLD BONDS AND $945,900.00 OF TENNESSEE EASTERN 
ELECTRIC COMPANY 5 PER CENT REFUNDING MORTGAGE GOLD 
BONDS; AUTHORIZING THE ISSUANCE OF 16,790 SHARES OF $6.00 
CUMULATIVE DIVIDEND, NO PAR, VOTING, PREFERRED STOCK, 
BY THE EAST TENNESSEE LIGHT AND POWER COMPANY, 6,000 
SHARES OF WHICH WILL BE ISSUED FOR THE PURPOSE OF EX- 
CHANGING FOR THE SAME NUMBER OF SHARES OF THE 6 PER 
CENT CUMULATIVE DIVIDEND, VOTING, PREFERRED STOCK OF 
TENNESSEE EASTERN ELECTRIC COMPANY NOW OUTSTANDING, 
5,105 SHARES FOR THE PURPOSE OF EXCHANGING FOR THE SAME 
NUMBER OF SHARES OF $7.00 CUMULATIVE DIVIDEND, NO PAR, 
NON-VOTING, PREFERRED STOCK OF THE TENNESSEE EASTERN 
ELECTRIC COMPANY, AND 2,635 SHARES FOR THE PURPOSE OF 
EXCHANGING FOR THE SAME NUMBER OF SHARES OF $6.00 CUMU- 
LATIVE DIVIDEND, NO PAR, NON-VOTING, PREFERRED STOCK OF 
THE EAST TENNESSEE LIGHT AND POWER COMPANY NOW OUT- 
STANDING, 1,530 SHARES FOR THE PURPOSE OF REIMBURSING 
THE PRESENT HOLDERS OF THE 6 PER CENT CUMULATIVE DIVI- 
DEND, VOTING, PEFERRED STOCK OF THE TENNESSEE EASTERN 
ELECTRIC COMPANY FOR CUMULATED UNPAID DIVIDENDS THERE- 
ON TO JUNE 1, 1939, AND 1,520 SHARES FOR THE PURPOSE OF RE- 
IMBURSING THE PRESENT HOLDERS OF $7.00 CUMULATIVE 
DIVIDEND, NON-VOTING, NO PAR, PREFERRED STOCK OF THE 
TENNESSEE EASTERN ELECTRIC COMPANY FOR CUMULATED 
UNPAID PREFERRED DIVIDENDS TO JUNE 1, 1938; AUTHORIZING 
THE CONSOLIDATION OR MERGER OF THE PHYSICAL PROPERTIES 
OF THE TENNESSEE EASTERN ELECTRIC COMPANY WITH THE 
EAST TENNESSEE LIGHT AND POWER COMPANY; AND AUTHOR- 
IZING THE CONSOLIDATION AND MERGER OF THE PHYSICAL PROP- 
ERTIES OF THE TENNESSEE REALTY COMPANY, A TENNESSEE 
CORPORATION, WITH THE PHYSICAL PROPERTIES OF THE EAST 
TENNESSEE LIGHT AND POWER COMPANY. 



Docket No. 1385, Raleigh, North Carolina 
May 25, 1939 



Opinion and Order 
This day, upon the verified allegations in the supplemental or amended 
application in the above styled matter, and upon hearing, this matter came 
on for further consideration upon the supplemental or amended application of 
Tennessee Eastern Electric Company, East Tennessee Light and Power Com- 
pany and Tennessee Realty Company for an order modifying the order of 
this Commission in this cause under date of August 10, 1938, so as to author- 
ize petitioner, East Tennessee Light and Power Company, to issue $413,000.00 



68 N". C. Utilities Commission 

of first mortgage refunding gold bonds after the merger or consolidation of the 
physical properties of the Tennessee Eastern Electric Company with the East 
Tennessee Light and Power Company and the merger or consolidation of the 
physical properties of the Tennessee Realty Company with the physical prop- 
erties of the East Tennessee Light and Power Company, in addition to the 
$383,000.00 of first mortgage refunding gold bonds it is authorized to issue 
under the order of this Commission dated August 10, 1938, petitioner Tennes- 
see Eastern Electric Company agreeing that if said merger or consolidation is 
consummated it will not issue first mortgage refunding bold bonds under said 
order in excess of $484,000.00, and the Commission being advised in the 
premises and for the purpose of entering an order modifying its order under 
date of August 10, 1938, and consenting to and authorizing the relief sought 
in the supplemental or amended petition finds, orders, adjudges and decrees as 
follows: 

(1) That the relief and requests sought in the supplemental or amended 
petition are hereby granted. 

(2) That petitioner East Tennessee Light and Power Company be, and it is 
hereby authorized and empowered to issue $383,000.00 5 per cent first mort- 
gage refunding gold bonds due 1954 provided for in the order of this Com- 
mission, dated August 10, 1938, and to sell same at not less than par, and in 
addition thereto said petitioner, East Tennessee Light and Power Company, 
is hereby authorized and empowered to issue an additional $413,000.00 of said 
5 per cent first mortgage and refunding gold bonds due 1954 to be sold at not 
less than par, after the merger or consolidation of the physical properties of 
Tennessee Eastern Electric Company with the physical properties of East 
Tennessee Light and Power Company, and the merger or consolidation of the 
physical properties of the Tennessee Realty Company with the physical 
properties of East Tennessee Light & Power Company, and under the same 
terms and conditions set out in the opinion and order of the Railroad and 
Public Utilities Commission of Tennessee, under date of September 22, 1938, 
and modified by order dated May 23, 1939. In the event that said merger or 
consolidation is made, the petitioner, Tennessee Eastern Electric Company, 
will not issue bonds in excess of $484,000.00 under the order of this Com- 
mission dated August 10, 1938, and under the order of the Railroad and Public 
Utilities Commission of Tennessee, dated September 22, 1938, and modified 
by order dated May 23, 1939. 

(3) The order of this Commission dated August 10, 1938, in all other 
respects shall remain unchanged. 

Stanley Winborne, 
Utilities Commissioner and 
Utilities Commission of the State of North Carolina. 
Docket No. 1385. 



Decisions and Adjustments of Complaints 69 

APPLICATION OF TENNESSEE EASTERN ELECTRIC COMPANY AND 
EAST TENNESSEE LIGHT AND POWER COMPANY, AND TENNES- 
SEE REALTY COMPANY, FOR AN ORDER AND CERTIFICATE AU- 
THORIZING THE ISSUANCE OF $383,000.00 OF EAST TENNESSEE 
LIGHT AND POWER COMPANY 5 PER CENT FIRST MORTGAGE AND 
REFUNDING GOLD BONDS AND $945,900.00 OF TENNESSEE EASTERN 
ELECTRIC COMPANY 5 PER CENT REFUNDING MORTGAGE GOLD 
BONDS; AUTHORIZING THE ISSUANCE OF 16,790 SHARES OF $6.00 
CUMULATIVE DIVIDEND, NO PAR, VOTING, PREFERRED STOCK, BY 
THE EAST TENNESSEE LIGHT AND POWER COMPANY, 6,000 SHARES 
OF WHICH WILL BE ISSUED FOR THE PURPOSE OF EXCHANGING 
FOR THE SAME NUMBER OF SHARES OF THE 6 PER CENT CUMU- 
LATIVE DIVIDEND, VOTING, PREFERRED STOCK OF TENNESSEE 
EASTERN ELECTRIC COMPANY NOW OUTSTANDING; 5,105 SHARES 
FOR THE PURPOSE OF EXCHANGING FOR THE SAME NUMBER OF 
SHARES OF $7.00 CUMULATIVE DIVIDEND, NO PAR, NON-VOTING, 
PREFERRED STOCK OF THE TENNESSEE EASTERN ELECTRIC COM- 
PANY, AND 2,635 SHARES FOR THE PURPOSE OF EXCHANGING FOR 
THE SAME NUMBER OF SHARES OF $6.00 CUMULATIVE DIVIDEND, 
NO PAR, NON-VOTING, PREFERRED STOCK OF THE EAST TENNES- 
SEE LIGHT AND POWER COMPANY NOW OUTSTANDING, 1,530 
SHARES FOR THE PURPOSE OF REIMBURSING THE PRESENT 
HOLDERS OF THE 6 PER CENT CUMULATIVE DIVIDEND, VOTING 
PREFERRED STOCK OF THE TENNESSEE EASTERN ELECTRIC COM- 
PANY FOR CUMULATED UNPAID DIVIDENDS THEREON TO JUNE 
1, 1938, AND 1,520 SHARES FOR THE PURPOSE OF REIMBURSING 
THE PRESENT HOLDERS OF $7.00 CUMULATIVE DIVIDEND, NON- 
VOTING, NO PAR, PREFERRED STOCK OF THE TENNESSEE EAST- 
ERN ELECTRIC COMPANY FOR CUMULATED UNPAID PREFERRED 
DIVIDENDS TO JUNE 1, 1938; AUTHORIZING THE CONSOLIDATION 
OR MERGER OF THE PHYSICAL PROPERTIES OF THE TENNESSEE 
EASTERN ELECTRIC COMPANY WITH THE EAST TENNESSEE 
LIGHT AND POWER COMPANY; AND AUTHORIZING THE CON- 
SOLIDATION AND MERGER OF THE PHYSICAL PROPERTIES OF THE 
TENNESSEE REALTY COMPANY, A TENNESSEE CORPORATION, 
WITH THE PHYSICAL PROPERTIES OF THE EAST TENNESSEE 
LIGHT AND POWER COMPANY. 



Docket No. 1385, Raleigh, North Carolina 
November 21, 1939 



Opinion and Order 
This day, upon the verified allegations in the second supplemental or 
amended application in the above styled matter, and upon hearing, this 
matter came on for further consideration upon the second supplemental or 
amended application of Tennessee Eastern Electric Company, East Tennessee 
Light and Power Company and Tennessee Realty Company for an order 
modifying or amending the order of this Commission in this cause under date 
of August 10, 1938, as amended or modified by order under date of May 25, 



70 N". C. Utilities Commission 

1939, and the Commission being advised in the premises and for the purpose 
of entering an order modifying its order and opinion under date of August 
10, 1938, as amended, by order and opinion dated May 25, 1939, and consenting 
to and authorizing the relief sought in the second supplemental or amended 
petition, finds, orders, adjudges and decrees as follows: 

(1) That the relief and requests sought in the second supplemental or 
amended petition are hereby granted. 

(2) That petitioner, East Tennessee Light and Power Company, is hereby 
authorized and empowered to issue $271,000 5 per cent First Mortgage and 
Refunding Bonds, to become due June 1, 1954, instead of the $383,000 first 
mortgage bonds provided for in the order of this Commission dated August 
10, 1938, and instead of the $413,000 first mortgage refunding bonds after the 
merger or consolidation of the physical properties of the Tennessee Eastern 
Electric Company with the East Tennessee Light and Power Company, and 
the merger or consolidation of the physical properties of the Tennessee 
Realty Company with the physical properties of the East Tennessee Light 
and Power Company, as provided for in the amended order of this Honorable 
Commission under date of May 25, 1939. 

(3) That petitioner, Tennessee Eastern Electric Company, is hereby au- 
thorized and empowered to issue $484,000 of 5 per cent refunding mortgage 
bonds, to become due December 1, 1958, which authorization has heretofore 
been granted by this Honorable Commission by order and opinion under date 
of August 10, 1938, as amended or modified by order and opinion dated 
May 25, 1939. 

(4) That petitioner, East Tennessee Light and Power Company is author- 
ized and empowered to issue 9,542 shares of common stock, without nominal 
or par value (stated value $50 per share), amounting to $477,100. 

(5) That petitioner, East Tennessee Light and Power Company, is author- 
ized and empowered to issue 15,110 shares of $6 cumulative dividend no par, 
voting preferred stock, to be exchanged for 11,105 shares of preferred stock 
of Tennessee Eastern Electric Company now outstanding, plus the dividend 
arrears to September 30, 1939, on the following basis: 

1.335 shares for each share of old 6 per cent stock 8,010 

1.3908 shares for each share of old $7 stock 7,100 



15,110 



instead of the number of shares and amounts stated in the caption hereof, 
and authorized by order of this Honorable Commission under date of August 
10, 1938, as amended by order of May 25, 1939. The authority to issue 2,635 
shares of $6 cumulative dividend, no par, voting preferred stock authorized to 
be issued by the East Tennessee Light and Power Company for the purpose 
of exchanging for the same number of shares of $6 cumulative dividend, no 
par, non-voting preferred stock of the East Tennessee Light and Power 
Company now outstanding, and authorized by this Honorable Commission, in 
order of August 10, 1938, as amended by order of May 25, 1939, shall remain 
unchanged. 



Decisions and Adjustments of Complaints 71 

(6) That the order and opinion of this Commission dated August 10, 1938, 
as amended by order and opinion of May 25, 1939, in all other respects shall 
remain unchanged. 

(S) Stanley Winborne, 

Utilities Commissioner 
and Utilities Commission of the State of North Carolina. 
December 16, 1939. 
Docket No. 1385. 

PETITION OF NANTAHALA POWER AND LIGHT COMPANY, FRANKLIN, 
NORTH CAROLINA, FOR EXTENSION OF RURAL LINE TO RESI- 
DENTS LIVING ALONG AND NEAR CARTOOGEECHAYE CREEK ON 
HIGHWAY NO. 64. 

Order 

The petitioner in this case owns and operated a hydro plant which formerly 
belonged to the Town of Franklin in Macon County, North Carolina, and has 
high-powered transmission lines in this vicinity which makes it possible to 
meet all the demands necessary for service wherever its lines may extend. It 
has lines from Franklin, North Carolina, to near Mount Hope Church on 
Cartoogeechaye Creek west toward Wayah Ball, but a number of residents 
desire service from near Mount Hope Church southwest along U. S. Highway 
No. 64. Therefore the petitioner states that in order to serve these parties it 
will be necessary to extend its transmission lines along Highway No. 64 
about one mile beyond Cartoogeechaye Church, which church is situated near 
the mouth of Laurel Creek. 

Inasmuch as the Company is in a position to serve this section and there is 
no service now being rendered, and it is adjacent to its present transmission 
lines and contiguous to the territory now being served by the applicant, 

It is ordered, that the petition be granted. 

This the 22nd day of December, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 
R. 0. Self, Chief Clerk. 

Docket No. 1427. 

APPLICATION OF NANTAHALA POWER AND LIGHT COMPANY UNDER 
CHAPTER 455, PUBLIC LAWS 1931 AND RULE No. 8 OF THE COMMIS- 
SION'S RULES OF PRACTICE, FOR AUTHORITY TO BUILD FIVE AND 
ONE-HALF MILES OF ELECTRIC TRANSMISSION LINES BETWEEN 
THE APPLICANT'S SUB-STATION AT SYLVA, N. C. TO WESTERN 
CAROLINA TEACHERS COLLEGE AT CULLOWHEE. 

This cause arises upon the application referred to above, in which the 
applicant, the Nantahala Power and Light Company has signified its desire to 
construct a transmission line between its sub-station at Sylva, N. C. and the 
Western Carolina Teachers College at Cullowhee, N. C. 

Notice of this application was served upon the superintendent of Dillsboro 
and Sylva Electric Light Company, and it appears that this proposed con- 
struction is being made by and with the consent and cooperation of this 



72 3S*. C. Utilities Commission 

company to the extent that the Dillsboro and Sylva Electric Light Company 
is permitting the use of its poles for a portion of this line. 

It further appears from the record that the Western Carolina Teachers 
College is willing to enter into a contract with the applicant for power. 

The Commission takes judicial notice of the fact that the applicant has 
ample power to furnish the Western Carolina Teachers College and other 
prospective customers in that vicinity or is able financially to provide for 
such future growth and development as may be necessary to meet the public 
demands. 

All other generators and transmitters of power in that immediate vicinity 
have been contacted and no opposition to the application has been made, and 
since it is apparent that the application appears to be in the interest of 
public convenience and necessity, and is so found, it is 

Ordered that the petition be granted, and it is 

Further ordered that the petitioner may begin such construction and oper- 
ation immediately upon receipt of this Certificate. 

This the 24th day of June, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1642. 

PETITION NANTAHALA POWER AND LIGHT COMPANY FOR CER- 
TIFICATE OF CONVENIENCE AND NECESSITY. 

This cause arises upon the petition of the Nantahala Power and Light 
Company to extend its operation from the end of its Cullowhee extension to 
East LaPorte, North Carolina by construction of a 6,600 volt three phase 
transmission line a distance of two and one-half miles. 

The only other power company operating in that section is the Dillsboro 
and Sylva Electric Light Company, and it has been communicated with, and 
one of its officials advises that such extension will not interfere with its 
rights, therefore it appears that this extension is in the interest of public 
convenience and is therefore necessary because of the existence of a contract, 
which has been made between the applicant and the Blackwood Lumber 
Company at East LaPorte, therefore, it is 

Ordered that the extension outlined as applied for above be granted. 

This the thirteenth day of December, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1771. 



Decisions and Adjustments of Complaints 73 

PETITION OF THE NANTAHALA POWER AND LIGHT COMPANY FOR 
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY, FIRST 
TO CONSTRUCT AND OPERATE A POWER DAM ON THE NANTAHALA 
RIVER IN MACON COUNTY, TO BE KNOWN AS THE "NANTAHALA 
DEVELOPMENT," AND TO CONSTRUCT AND OPERATE A POWER 
DAM FOR THE PURPOSE OF GENERATING ELECTRICITY ON THE 
TUCKASEIGEE RIVER IN JACKSON COUNTY, TO BE KNOWN AS THE 
"GLENVILLE PROJECT," TOGETHER WITH THE NECESSARY HYDRO- 
ELECTRIC GENERATING PLANTS AND TRANSMISSION LINES FOR 
BOTH PROJECTS. 

Order 
This cause arises upon the application of the Nantahala Power and Light 
Company for a certificate of public convenience and necessity under Rule 8 
of the Commission's Rules of Practice and Procedure as authorized under 
Chapter 455 of the Public Laws of 1931, for the construction and operation of 
the Nantahala Development on the Nantahala River in Macon County, 
construction upon which was started in August 1929 and temporarily 
suspended in 1931; and the Glenville Project on the Tuckaseigee River in 
Jackson County, and for the construction of necessary hydro-electric gen- 
erating plants and transmission lines to produce and convey the energy so 
generated by the above hydro-electric plants to the points of connection with 
the existing customers, all of which points are within the State of North 
Carolina. 

The application was filed with the Commission and heard on the 18th day 
of June, and was not advertised for the reason that nothing therein appears 
to affect any other power company, as the applicant has arrangements made 
for the location of new plants within its territory to take any surplus power 
that it may have in addition to meeting the needs of its present customers, 
and the application does not involve extending its territory beyond its present 
authorized area. 

The applicant is a corporation organized and existing under the laws of 
the State of North Carolina, with its principal place of business in Franklin 
in Macon County. It is a public service corporation engaged in the generation 
and sale of electrical energy to the general public within the confines of the 
area served, which area it had preempted prior to the enactment of Chapter 
455 of the Public Laws of 1931, or has since obtained certificates of con- 
venience and necessity therefor. 

The proposed hydro-electric plants are described as follows: 

Nantahala development will consist of a dam 260 feet in height, creating 
a reservoir, when full, of approximately 1,631 acres, a tunnel approxi- 
mately five miles in length, and a power plant consisting of one 60,000 
HP unit, operating under a head of 999 feet. 

The Glenville project will consist of a dam approximately 130 feet in 
height, creating a reservoir, when full, of approximately 1,470 acres, and 
a tunnel approximately three miles in length, with a power plant oper- 
ating under a head of 1,215 feet. 

In addition to the above description, the applicant has filed a sketch map 
showing the location of the streams to be utilized and the approximate drain- 
age area, which map is made a part hereof. 



74 N". C. Utilities Commission 

The applicant presented evidence to the effect that the completion of 
construction of the Nantahala Development and the commencement of the 
construction of the Glenville Project is required to meet the demands of the 
customers being served, prospective customers, and for the increased needs of 
customers producing war material, including an affiliated company. 

The applicant with the backing of its parent company, the Aluminum 
Company of America, is found fit, able, and willing to finance and construct 
and operate the proposed system, and applicant further proposes to finance 
the construction of the above work with funds furnished by the sale of 
securities of the applicant to the parent company; and applicant further 
states that it is planned to commence work as soon as the necessary pre- 
liminaries have been completed. 

From the evidence presented, the Commission finds public convenience and 
necessity for the proposed projects, therefore, it is 

Ordered, that the applications be granted, and that the applicant is hereby 
authorized to proceed with the construction as outlined in the application. 

This the 18th day of June 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1997. 

PETITION NANTAHALA POWER AND LIGHT COMPANY OF FRANKLIN, 
NORTH CAROLINA FOR A CERTIFICATE OF PUBLIC CONVENIENCE 
AND NECESSITY. 

This cause arises upon the petition of the above named company for a 
certificate of convenience and necessity for the construction of about one mile 
of three-phase 12 KV line from the Sylva-Cullowhee transmission line to a 
point near Webster, North Carolina for the purpose of extending power 
service to a mine and process operation by Gillis and Pawel, the location of 
said line being shown on map represented as Exhibit A, filed with said 
application. 

This territory is being served by the applicant within about one mile both 
east and west of this plant and it appears that the applicant is the proper 
party to extend this service to the territory in question. 

The Dillsboro-Sylva Power and Light Company placed itself upon record 
as not opposing such extensions in the territory for power service for the 
reason that it was not in position to furnish large power. 

From all the evidence before the Commission, it appears that the granting 
of this application will enhance public convenience and necessity in the 
territory affected, and the application is therefore granted. 

This the twenty-third day of August, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 2044. 



Decisions and Adjustments of Complaints 75 

PETITION OF THE NANTAHALA POWER AND LIGHT COMPANY FOR 
CERTIFICATE OF CONVENIENCE AND NECESSITY, UNDER CHAP- 
TER 455, PUBLIC LAWS OF 1931, FOR AUTHORITY TO CONSTRUCT 
12y 2 MILES OF 12 KV ELECTRIC POWER TRANSMISSION LINE FROM 
THE FRANKLIN POWERHOUSE TO A POINT NEAR WEBSTER, 
NORTH CAROLINA, GENERALLY PARALLELING THE ROUTE OF 
HIGHWAY NO. 23, BETWEEN FRANKLIN, NORTH CAROLINA AND 
SYLVA. 

This cause arises upon the petition of the Nantahala Power and Light 
Company of Franklin, North Carolina for authority to construct about 12 y 2 
miles of 12 KV electric power line from Franklin, North Carolina Power- 
house to a point near Webster, the line to generally follow the route of 
Highway No. 23, between the towns of Franklin and Sylva, so as to connect 
the Franklin plant and transmission system to the transmission system in 
the Central part of Jackson County. No other power company serves this 
section, nor is sufficiently adjacent thereto with adequate power to have any 
interest therein. 

From the evidence it appears that the present generating plant at Franklin 
is connected to the 66 KV transmission through a substation near West's 
Mill. The voltage of this transmission line is to be increased to 154 KV in 
connection with the Hydro-electric Plant at Glenville, the construction of 
which was recently authorized by this Commission, and as it does not appear 
to be feasible to tap this 154 KV line for the Franklin system, some other 
provision must be made for supplying the Franklin area, therefore, the 
applicant proposes to build a 66-12 KV substation and to build a new 12 KV 
line from it to the Franklin plant. 

The locations of said proposed new line and other properties of the 
applicant are more definitely located on a map filed by the applicant and 
known as Exhibit No. 1, in Docket No. 2062, and by this reference made a 
part hereof. 

The evidence further states that this line is thought to be sufficiently heavy 
to provide adequate service to the area around Franklin for many rural 
families living along Highway No. 23 between Greens Creek in Jackson 
County and the Franklin plant in Macon County. The evidence further reveals 
that a number of families have already made application for this service, 
therefore, the Commission finds that the service proposed in the application 
is in the public interest and is necessary to the development of the section 
which it affects, therefore, it is 

Ordered, that the petition be granted and that the applicant be furnished a 
certified copy of this Certificate. 

This the twentieth day of September, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 2062. 



76 NV 0. Utilities Commission 

APPLICATION OF TENNESSEE EASTERN ELECTRIC COMPANY AND 
EAST TENNESSEE LIGHT AND POWER COMPANY AND TENNESSEE 
REALTY COMPANY FOR ORDER AND CERTIFICATE AUTHORIZING 
ISSUANCE OF FIRST MORTGAGE AND REFUNDING BONDS, ETC. 
(See East Tennessee Light and Power Company). Approved. Docket No. 
1385. 

AN APPLICATION OF THE TIDE WATER POWER COMPANY TO THE 
UTILITIES COMMISSION OF THE STATE OF NORTH CAROLINA 
FOR AN ORDER AUTHORIZING THE ABANDONMENT OF CITY 
STREET CAR OPERATIONS IN THE CITY OF WILMINGTON AND 
THE SUBSTITUTION OF MOTOR BUS SERVICE THEREFOR. 

Order 

This cause coming on to be heard upon the petition of the Tide Water 
Power Company for the purpose of securing an order of this Commission 
authorizing the abandonment of certain properties of the Tide Water Power 
Company, consisting of all city street car lines in the City of Wilmington, but 
not including the suburban line, and the substitution of motor bus service 
therefor, and being heard and it appearing to the Commissioner that the Tide 
Water Power Company has secured authority from the City of Wilmington 
to abandon operation of said city street car service and street railway prop- 
erties located within the City of Wilmington, exclusive of suburban proper- 
ties, and that franchise has been granted by the Commissioners of the City of 
Wilmington to the Tide Water Power Company for the operation of a system 
of transportation by motor buses over the streets duly designated by the 
City. 

The Commissioner, being of the opinion and finding as a fact that the 
said city street railway lines and tracks are not necessary for the operation 
and development of the Tide Water Power Company and that continued owner- 
ship and operation of said lines of street railway and railway properties by 
the Tide Water Power Company is not necessary or desirable and would not 
be in the best interest of the Company. 

And the Commissioner further finding as a fact that the substitution of 
motor buses for city street cars over the routes and upon the streets desig- 
nated by the City of Wilmington will serve the public more adequately and 
provide a satisfactory method of transportation; and the Commissioner 
further finding as a fact that certain suburban developments near the city 
limits of the City of Wilmington are without adequate transportation service 
and that it would be to the best interest of the public for the Tide Water 
Power Company to have the right to operate the city lines of motor buses 
beyond the city limits so as to serve the suburban areas. 

It is, therefore, ordered and adjudged that the Tide Water Power Com- 
pany be and it is hereby expressly authorized to abandon the operation of 
those certain railway and street railway properties consisting of all city 
street car lines, but not suburban lines, referred to in the petition from and 
after the date of this order. 

And it is further ordered and adjudged that the Tide Water Power Com- 
pany substitute in lieu of said city street car service now ordered abandoned 
a system of transportation by motor buses, in accordance with the terms and 



Decisions and Adjustments of Complaints 77 

conditions of a franchise of the City of Wilmington issued to the Tide Water 
Power Company and over such streets as the City may, from time to time 
designate, with the additional right in the Tide Water Power Company, its 
successors and assigns, to operate said motor buses beyond the limits of the 
City of Wilmington so as to serve the suburban areas of said City. 
This 14th day of April, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
Attest: 

R. O. Self, Clerk. 
Docket No. 1595. 

APPLICATION OF THE TIDE WATER POWER COMPANY TO THE UTIL- 
ITIES COMMISSION OP THE STATE OF NORTH CAROLINA FOR AN 
ORDER AUTHORIZING THE ABANDONMENT OF ELECTRIC RAIL- 
ROAD SERVICE IN AND BETWEEN THE CITY OF WILMINGTON AND 
THE TOWN OF WRIGHTSVILLE BEACH, AND THE SUBSTITUTION 
OF MOTOR BUSES THEREFOR, AND FOR THE OPENING AND SET- 
TING UP OF AN ACCOUNT ON THE BOOKS OF THE COMPANY UNDER 
SECTION 4, ACCOUNT NUMBER 141, OF THE CLASSIFICATION OF 
ACCOUNTS KNOWN AS N.A.R.U.C— UNIFORM SYSTEM OF ACCOUNTS 
FOR ELECTRIC UTILITIES— AND THE FIXING OF THE PERIOD 
AND RATE OF AMORTIZATION THEREFOR. 

Order 

This cause coming on to be heard upon a petition of the Tide Water Power 
Company filed for the purpose of securing an order from this Commission 
authorizing the abandonment of certain railroad properties of the Tide Water 
Power Company consisting of the interurban line between the City of 
Wilmington and the Town of Wrightsville Beach and the freight track across 
the City of Wilmington for connection with the facilities of the Atlantic Coast 
Line Railroad Company, and the substitution therefor of a system of trans- 
portation by motor buses, and directing that the balance of the fixed capital 
of the railroad department remaining after the abandonment of railroad op- 
erations and less the applicable retirement reserve and other just credits be 
set up as a deferred debit to be amortized over a period of years, said period 
of amortization to be fixed by this Commission; and being heard, and it 
appearing to the Commissioner from said petition and from reports filed with 
this Commission over a period of years that the operation of the said inter- 
urban street car line has been at a loss and should not be further carried on, 
and that the freight track connecting with the facilities of the Atlantic Coast 
Line Railroad Company would be of no use whatsoever upon abandonment of 
the interurban line, and that from a study of the reports on file with the 
Commission the substitution of buses for the street car service in the City of 
Wilmington has resulted in a change from loss of operation by street cars 
to a profit in the operation of motor buses. 

And the Commissioner, being of the opinion, and finds as a fact that the 
said interurban railway line between the City of Wilmington and the Town 
of Wrightsville Beach and the freight track connecting with the Atlantic 
Coast Line Railroad Company are not necessary for the operation and de- 



78 N". C. Utilities Commission 

velopment of the Tide Water Power Company, and the continued ownership 
and operation of said lines of railway and railway properties by the Tide 
Water Power Company is not necessary or desirable and would not be to the 
best interest of the Company. 

And it further appearing to the Commissioner that the Tide Water Power 
Company is now the owner of a franchise from the State of North Carolina 
to operate motor buses for the transportation of passengers over and 
along the highways between the City of Wilmington and the Town of Wrights- 
ville Beach and over the streets in said cities; and the Commissioner further 
finds as a fact that the substitution of motor buses for the transportation of 
passengers over the highways between the City of Wilmington and the Town 
of Wrightsville Beach will serve the public more adequately and provide a 
more satisfactory method of transportation, and that the abandonment of the 
railroad service and the substitution of a system of transportation by motor 
buses would be in the public interest. 

And it further appearing to the Commissioner from said petition and from 
his own investigation and the reports filed by the Company with the Com- 
missioner, that upon the suspension and abandonment of the street car oper- 
ations and the substitution of a system of transportation by motor buses there 
will remain in fixed capital, after all just credits are made, including the 
application thereto of proper retirement reserve, the sum of $1,067,059.63, and 
which at this time can not be charged out of the books of the Company, and 
that the necessity for the abandonment of the interurban railway line and 
the said freight track is now proper and necessary through the loss in oper- 
ations resulting from automobile traffic following the opening of Wrightsville 
Beach to automobile traffic by the building of bridges across the Sound and 
the laying of highways on the Beach, and that the said situation does not 
arise out of ordinary depreciation but through obsolescence. 

And the Commissioner further finds as a fact that the Tide Water Power 
Company could not reasonably have foreseen and provided for the sudden 
cessation of business over its interurban line, resulting immediately in such 
losses as would require the abandonment of said operations; and that a 
charge as provided by Section 4, Account Number 141, of the Classification of 
Accounts known as N.A.R.U.C. — Uniform System of Accounts for Electric 
Utilities — heretofore adopted by this Commission, is proper and should be 
authorized and directed. 

And it further appearing to the Commissioner from his investigation and 
from reports heretofore filed with the Commission that the Tide Water Power 
Company may reasonably be expected to pay out of earnings the sum of 
$100,000 annually in amortization of said amount of $1,067,059.63, and that a 
period of ten (10) years would not be an unreasonable period and would not 
be adverse to any public interest. 

It is, therefore, ordered and adjudged that the Tide Water Power Com- 
pany be and it is hereby authorized and empowered to abandon the operation 
of the interurban street car line between the City of Wilmington and the 
Town of Wrightsville Beach and the freight line connecting said interurban 
line with the facilities of the Atlantic Coast Line Railroad Company. 

It is further ordered and adjudged that the the Tide Water Power Company 
be and it hereby is authorized and empowered to substitute a system of trans- 
portation by motor buses, in accordance with the franchise heretofore granted 



Decisions and Adjustments of Complaints 79 

the Tide Water Power Company by the State of North Carolina, over the 
highways between the City of Wilmington and Wrightsville Beach, and, as 
authorized by franchise, over the streets of said City and Town; but nothing 
herein contained shall be construed to authorize the operation of trucks or 
to engage in the general business of a common carrier of freight. 

It is further ordered and adjudged that the Tide Water Power Company 
be and it hereby is authorized to set up and open upon the books of the Com- 
pany a deferred debit account, to be called by any appropriate name, and to 
charge thereto the sum of $1,067,059.63, as provided by Section 4, Account 
Number 141, of the Classification of Accounts known as N.A.R.U.C. — Uniform 
System of Accounts for Electric Utilities — heretofore adopted by the Com- 
mission as the classification of accounts for electric utilities. 

It is further ordered and adjudged that the Tide Water Power Company 
be and it hereby is authorized and directed to amortize said amount of 
$1,067,059.63, set up in said deferred debit account, over a period of ten (10) 
years, beginning as of the date of this order, and that the minimum annual 
amount to be paid each year shall be $100,000, unless upon the application and 
for good reason shown the Commission shall see fit to modify this order; and 
as to the difference that will exist between the annual payments for ten years 
and the amount authorized to be charged to said deferred debit account, the 
Tide Water Power Company shall pay the same over said period of time in 
any amount it sees fit, provided that the same shall be paid before the ex- 
piration of ten years or it shall become due and payable at the end of ten 
years. Nothing herein contained shall be construed to prevent the Tide Water 
Power Company, at any time, from paying any sum annually, or from time 
to time, above the $100,000 specified herein as a minimum annual payment in 
amortization of said charge. 

This 25th day of April, 1940. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Attest: 

R. O. Self, Clerk. 

Docket No. 1971. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION FOR 
AUTHORITY TO PAY A DIVIDEND OF 25 CENTS PER SHARE ON ITS 
COMMON STOCK ON DECEMBER 15, 1938. 

Order 
This day came Virginia Electric and Power Company, hereinafter some- 
times called the Company, and presented its application signed under date of 
November 1938, by J. G. Holtzclaw, President, under the provisions of Chap- 
ter 307 of the Acts of Assembly of 1933 (Sections 1112 (l)-(36), inclusive, 
Michie's Code of 1935), asking for authority to pay a dividend at the rate of 
twenty-five cents (25c) per share on the common stock of said Company 
outstanding and on such additional common stock as may be issued under the 
provisions of the Merger Agreement between said Company and the City Gas 
Company of Norfolk, dated June 9, 1930, and there were presented with said 
application and referred to and identified therein exhibits "A" and "B"; and 



80 "N. C. Utilities Commission 

upon motion of the said Company, by Hunton, Williams, Anderson, Gay & 
Moore, its counsel, through T. Justin Moore, of Counsel; 

It is ordered, that said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for im- 
mediate consideration by the Commission, upon the application, exhibits and 
representations of Counsel, without formal hearing; 

Thereupon, this matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel, and was argued 
by counsel; 

Upon consideration whereof, the Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this State equip- 
ment or facilities for producing, generating, transmitting, delivering or 
furnishing electricity; and it appearing from said application, exhibits and 
representations, and from the investigation and consideration by the Com- 
mission, that the Company's capital represented by its 2,788,445 shares with- 
out par value of common stock (including stock outstanding and such 
additional common stock as may be issued in exchange for scrip or as may 
be issued under the provisions of the Merger Agreement between the Com- 
pany and City Gas Company of Norfolk, dated June 9, 1930) as shown by its 
books, amounts to the sum of $15,137,260; that the current net earnings of 
the Company (after setting aside suitable appropriations for Retirement 
Reserve, as authorized by the Board of Directors, and the amount required 
for the payment of preferred dividends) available for common dividends and 
surplus for the twelve months ending September 30, 1938, amounted to the sum 
of $2,251,550.93; that the current net earnings for the last nine months' period 
beginning January 1, 1938 and ending September 30, 1938 available for com- 
mon dividend and surplus, after provision for Retirement Reserve and 
Preferred Dividends amounted to $1,657,731.29; that the dividend proposed 
to be paid by the Company at the rate of 25c per share on the common stock 
outstanding and on such additional common stock as may be issued under the 
provisions of the Merger Agreement between the Company and the City Gas 
Company of Norfolk, dated June 9, 1930, consisting in the aggregate of 2,788,445 
shares, will not exceed the sum of $697,111.25, which together with the three 
(3) dividends totaling 45c per share paid during 1938, is substantially less 
than the net earnings of the Company available for common dividends cur 
rently earned during the last twelve months ending September 30, 1938; and 
that the payment of said dividend will in no wise impair the Company's neces- 
sary working capital or interfere with its ability to continue to furnish an ade- 
quate and sufficient service to its customers, and is in no way inconsistent with 
the public interest; and the Commission being of the opinion that the prayer 
of said application should be granted, and that the payment of said dividend 
should be approved and authorized: 

It is Therefore Adjudged, Ordered and Decreed, that Virginia Electric and 
Power Company be, and it hereby is, authorized empowered and permitted to 
pay a dividend of 25c per share on the Company's common stock represented 
by 2,788,445 shares without par value (including common stock outstanding 
and such additional common stock as may be issued under the provisions of the 
Merger Agreement between the Company and the City Gas Company of Nor- 
folk, dated June 9, 1930), payable on or about December 15, 1938, amounting 
to a sum not to exceed $697,111.25, provided, however, that the payment to be 



Decisions and Adjustments of Complaints 81 

made hereunder shall not exceed the actual current net earnings available 
for such purpose. 

Provided, However, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this order 
without charge therefor, upon being furnished with the necessary copies by 
said Company; and 

Provided Further, that this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This the 10th day of November, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 

By R. O. Self, Chief Clerk. 

Docket No. 1461. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION FOR 
AUTHORITY TO PAY A DIVIDEND OF 20c PER SHARE ON ITS COM- 
MON STOCK ON SEPTEMBER 15, 1939. 

Order 

This day came Virginia Electric and Power Company, hereinafter sometimes 
called the Company, and presented its application signed under date of July 
18, 1939, by J. G. Holtzclaw, President, under the provisions of Chapter 307 
of the Acts of Assembly of 1933 (Sections 1112 (1)- (36), inclusive, Michie's 
Code of 1935), asking for authority to pay a dividend at the rate of twenty 
cents (20c) per share on the common stock of said Company outstanding 
and on such additional common stock as may be issued under the provisions 
of the Merger Agreement between said Company and the City Gas Company of 
Norfolk, dated June 9, 1930, and there were presented with said application 
and referred to and identified therein exhibits "A" and "B"; and upon motion 
of the said Company, by Hunton, Williams, Anderson, Gay & Moore, its 
counsel, through T. Justin Moore, of Counsel; 

It is Ordered, that said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for imme- 
diate consideration by the Commission, upon the application, exhibits and 
representations of Counsel, without formal hearing; 

Thereupon, this matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel, and was argued 
by counsel; 

Upon Consideration Whereof, the Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this state equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and repre- 
sentations, and from the investigation and consideration by the Commission, 
that the Company's capital represented by its 2,788,445 shares without par 
value of common stock (including stock outstanding and such additional com- 
mon stock as may be issued in exchange for scrip or as may be issued under the 
provisions of the Merger Agreement between the Company and City Gas 
Company of Norfolk, dated June 9, 1930) as shown by its books, amounts to the 



82 N". C. Utilities Commission 

sum of $16,637,260; that the current net earnings of the Company (after 
setting aside suitable appropriations for Retirement Reserve, as authorized by 
the Board of Directors, and the amount required for the payment of pre- 
ferred dividends) available for common dividends and surplus for the twelve 
months ending June 30, 1939, amounted to the sum of $2,560,042.91; that the 
current net earnings for the last nine months' period beginning October 1, 
1938, and ending June 30, 1939, available for common dividend and surplus, 
after provision for Retirement Reserve and Preferred Dividends amounted to 
$1,941,326.06; that the dividend proposed to be paid by the Company at the 
rate of 20c per share on the common stock outstanding and on such additional 
common stock as may be issued under the provisions of the Merger Agree- 
ment between the Company and the City Gas Company of Norfolk, dated 
June 9, 1930, consisting in the aggregate of 2,788,445 shares, will not exceed 
the sum of $557,689.00, which together with the two (2) dividends totaling 
35c per share paid during 1939, is substantially less than the net earnings 
of the Company available for common dividends currently earned during the 
last nine months ending June 30, 1939; and that the payment of said divi- 
dend will in no wise impair the Company's necessary working capital or 
interfere with its ability to continue to furnish an adequate and sufficient 
service to its customers, and is in no way inconsistent with the public interest; 
and the Commission being of opinion that the prayer of said application 
should be granted, and that the payment of said dividend should be approved 
and authorized: 

It is Therefore Adjudged, Ordered and Decreed, that Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted to 
pay a dividend of 20c per share on the Company's common stock represented by 
2,788,445 shares without par value (including common stock outstanding and 
such additional common stock as may be issued under the provisions of the 
Merger Agreement between the Company and the City Gas Company of Nor- 
folk, dated June 9, 1930), payable on or about September 15, 1939, amounting 
to a sum not to exceed $557,689.00, provided, however, that the payment to be 
made hereunder shall not exceed the actual current net earnings available 
for such purpose. 

Provided, However, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this order 
without charge therefor, upon being furnished with the necessary copies by 
said Company; and 

Provided Further, that this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This the 19th day of July, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 
By R. O. Self, Chief Clerk. 

Docket No. 1658. 



Decisions and Adjustments of Complaints 83 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION FOR 
AUTHORITY TO PAY A DIVIDEND OF 25c PER SHARE ON ITS COM- 
MON STOCK ON DECEMBER 15, 1939. 

Order 

This day came Virginia Electric and Power Company, hereinafter sometimes 
called the Company, and presented its application signed under date of Octo- 
ber 23, 1939, by J. G. Holtzclaw, President, under the provisions of Chapter 307 
of the Acts of Assembly of 1933 (Sections 1112(1) -(36), inclusive, Michie's 
Code of 1935), asking for authority to pay a dividend at the rate of twenty- 
five cents (25c) per share on the common stock of said Company outstanding 
and on such additional common stock as may be issued under the provisions of 
the Merger Agreement between said Company and the City Gas Company of 
Norfolk, dated June 9, 1930, and there were presented with said application 
and referred to and identified therein exhibits "A" and "B"; and upon motion 
of the said Company, by Hunton, Williams, Anderson, Gay & Moore, its coun- 
sel, through T. Justin Moore, of Counsel; 

It is Ordered, that said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for 
immediate consideration by the Commission, upon the application, exhibits 
and representations of Counsel, without formal hearing; 

Thereupon, this matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel, and was argued 
by counsel; 

Upon Consideration Whereof, the Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this state equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and rep- 
resentations, and from the investigation and consideration by the Commission, 
that the Company's capital represented by its 2,788,445 shares without par 
value of common stock (including stock outstanding and such additional com- 
mon stock as may be issued in exchange for scrip or as may be issued under 
the provisions of the Merger Agreement between the Company and City Gas 
Company of Norfolk, dated June 9, 1930) as shown by its books, amounts to 
the sum of $16,637,260; that the current net earnings of the Company (after 
setting aside suitable appropriations for Retirement Reserve, as authorized 
by the Board of Directors, and the amount required for the payment of pre- 
ferred dividends) available for common dividends and surplus for the twelve 
months ending September 30, 1939, amounted to the sum of $2,656,106.79; that 
the current net earnings for the last nine months' period beginning January 1, 
1939, and ending September 30, 1939, available for common dividend and sur- 
plus, after provision for Retirement Reserve and Preferred Dividends 
amounted to $2,000,962.07; that the dividend proposed to be paid by the Com- 
pany at the rate of 25c per share on the common stock outstanding and on such 
additional common stock as may be issued under the provisions of the Merger 
Agreement between the Company and the City Gas Company of Norfolk, dated 
June 9, 1930, consisting in the aggregate of 2,788,445 shares, will not exceed 
the sum of $697,111.25, which together with the three (3) dividends totaling 
55c per share paid during 1939, is substantially less than the net earnings of 
the Company available for common dividends currently earned during the 



84 N. C. Utilities Commission 

last twelve months ending September 30, 1939; and that the payment of said 
dividend will in no wise impair the Company's necessary working capital or 
interfere with its ability to continue to furnish an adequate and sufficient 
service to its customers, and is in no way inconsistent with the public inter- 
est; and the Commission being of the opinion that the prayer of said appli- 
cation should be granted, and that the payment of said dividend should be 
approved and authorized: 

It is Thekefore Adjudged, Ordered and Decreed, that Virginia Electric and 
Power Company be, and it hereby is authorized, empowered and permitted to 
pay a dividend of 25c per share on the Company's common stock represented by 
2,788,445 shares without par value (including common stock outstanding and 
such additional common stock as may be issued under the provisions of the 
Merger Agreement between the Company and the City Gas Company of Norfolk, 
dated June 9, 1930), payable on or about December 15, 1939, amounting to a sum 
not to exceed $697,111.25, provided, however, that the payment to be made 
hereunder shall not exceed the actual current net earnings available for such 
purpose. 

Provided, However, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this order 
without charge therefor, upon being furnished with the necessary copies by 
said Company; and 

Provided, Further, that this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This the 2nd day of November, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 
By R. 0. Self, Chief Clerk. 

Docket No. 1728. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION FOR 
AUTHORITY TO PAY A DIVIDEND OF 20c PER SHARE ON ITS COM- 
MON STOCK ON SEPTEMBER 16, 1940. 

Order 

This day came Virginia Electric and Power Company, hereinafter sometimes 
called the Company, and presented its application signed under date of July 17, 
1940, by J. G. Holtclaw, President, under the provisions of Chapter 307 of the 
Acts of Assembly of 1933 (Sections 1112(l)-(36), inclusive, Michie's Code of 
1935), asking for authority to pay a dividend at the rate of twenty cents (20c) 
per share on the common stock of said Company outstanding and on such 
additional common stock as may be issued under the provisions of the Merger 
Agreement between said Company and the City Gas Company of Norfolk, dated 
June 9, 1930, and there were presented with said application and referred to 
and identified therein exhibits "A" and "B"; and upon motion of the said 
Company, by Hunton, Williams, Anderson, Gay & Moore, its counsel, through 
T. Justin Moore, of Counsel; 

It is Ordered, that said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for imme- 



Decisions and Adjustments of Complaints 85 

diate consideration by the Commission, upon the application, exhibits and 
representations of Counsel, without formal hearing; 

Thereupon, this matter came on this day to be heard and considered, 
upon the said application, exhibits and representations of counsel, and was 
argued by counsel; 

Upon Consideration Whereof, the Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this state equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and rep- 
resentations, and from the investigation and consideration by the Commission, 
that the Company's capital represented by its 2,788,445 shares without par 
value of common stock (including stock outstanding and such additional com- 
mon stock as may be issued in exchange for scrip or as may be issued under 
the provisions of the Merger Agreement between the Company and City Gas 
Company of Norfolk, dated June 9, 1930), as shown by its books, amounts to 
the sum of $16,637,260; that the current net earnings of the Company (after 
making suitable provisions for depreciation, as authorized by the Board of 
Directors, and the amount required for the payment of preferred dividends) 
available for common dividends and surplus for the twelve months ending 
June 30, 1940, amounted to the sum of $2,870,353.47; that the current net 
earnings for the last nine months' period beginning October 1, 1939, and ending 
June 30, 1940, available for common dividend and surplus, after provision for 
depreciation and preferred dividends amounted to $2,155,572.74; that the divi- 
dend proposed to be paid by the Company at the rate of 20c per share on the 
common stock outstanding and on such additional common stock as may be 
issued under the provisions of the Merger Agreement between the Company 
and the City Gas Company of Norfolk, dated June 9, 1930, consisting in the 
aggregate of 2,788,445 shares, will not exceed the sum of $557,689.00, which 
together with the two (2) dividends totaling 35c per share paid during 1940, 
is substantially less than the net earnings of the Company available for com- 
mon dividends currently earned during the last nine months ending June 30, 
1940 ; and that the payment of said dividend will in no wise impair the Com- 
pany's necessary working capital or interfere with its ability to continue to 
furnish an adequate and sufficient service to its customers, and is in no way 
inconsistent with the public interest; and the Commission being of opinion 
that the prayer of said applicant should be granted, and that the payment of 
said dividend should be approved and authorized: 

It is Therefore Adjudged, Ordered and Decreed, that Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted to 
pay a dividend of 20c per share on the Company's common stock represented 
by 2,788,445 shares without par value (including common stock outstanding 
and such additional common stock as may be issued under the provisions of 
the Merger Agreement between the Company and the City Gas Company of 
Norfolk, dated June 9, 1930), payable on or about September 16, 1940, 
amounting to a sum not to exceed $557,689.00, provided, however, that the 
payment to be made hereunder shall not exceed the actual current net earnings 
available for such purpose. 

Provided, However, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this order 



86 ~N. C. Utilities Commission 

without charge therefor, upon being furnished with the necessary copies by 
said Company; and 

Provided Further, that this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This the 19th day of July, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commission: 
By R. 0. Self, Chief Clerk. 
Docket No. 2025. 

VIRGINIA ELECTRIC AND POWER COMPANY ON APPLICATION FOR 
AUTHORITY TO PAY A DIVIDEND OF 25c PER SHARE ON ITS COM- 
MON STOCK ON DECEMBER 16, 1940. 

Order 

This day came Virginia Electric and Power Company, hereinafter sometimes 
called the Company, and presented its application signed under date of Octo- 
ber 28, 1940, by J. G. Holtzclaw, President, under the provisions of Chapter 307 
of the Acts of Assembly of 1933 (Sections 1112(1)- (36), inclusive, Michie's 
Code of 1935), asking for authority to pay a dividend at the rate of twenty-five 
cents (2,5c) per share on the common stock of said Company outstanding and 
on such additional common stock as may be issued under the provisions of the 
Merger Agreement between said Company and the City Gas Company of Nor- 
folk, dated June 9, 1930, and there were presented with said application and 
referred to and identified therein exhibits "A" and "B"; and upon motion of 
the said Company, by Hunton, Williams, Anderson, Gay & Moore, its counsel 
through T. Justin Moore, of Counsel; 

It is Ordered, that said application and exhibits "A" and B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for imme- 
diate consideration by the Commission, upon the application, exhibits and rep- 
resentations of Counsel, without formal hearing; 

Thereupon, this matter came on this day to be heard and considered upon 
the said application, exhibits and representations of counsel, and was argued 
by counsel; 

Upon Consideration Whereof, the Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this state equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and rep- 
resentations, and from the investigation and consideration by the Commission, 
that the Company's capital represented by its 2,788,445 shares without par 
value of common stock (including stock outstanding and such additional com- 
mon stock as may be issued in exchange for scrip or as may be issued under 
the provisions of the Merger Agreement between the Company and City Gas 
Company of Norfolk, dated June 9, 1930) as shown by its books, amounts to 
the sum of $16,637,260; that the current net earnings of the Company (after 
setting aside suitable provisions for depreciation, as authorized by the Board 
of Directors, and the amount required for the payment of preferred dividends) 
available for common dividends and surplus for the twelve months ending 



Decisions and Adjustments of Complaints 87 

September 30, 1940, amounted to the sum of $2,911,624.44; that the current net 
earnings for the last nine months' period beginning January 1, 1940, and end- 
ing September 30, 1940, available for common dividend and surplus, after 
provision for depreciation and preferred dividends amounted to $2,250,- 
565.08; that the dividend proposed to be paid by the Company at the rate of 
25c per share on the common stock outstanding and on such additional com- 
mon stock as may be issued under the provisions of the Merger Agreement 
between the Company and the City Gas Company of Norfolk, dated June 9, 
1930, consisting in the aggregate of 2,788,445 shares, will not exceed the sum of 
$697,111.25, which together with the three (3) dividends totaling 55c per share 
paid during 1940, is substantially less than the net earnings of the Company 
available for common dividends currently earned during the last twelve 
months ending September 30, 1940; and that the payment of said dividend will 
in no wise impair the Company's necessary working capital or interfere with 
its ability to continue to furnish an adequate and sufficient service to its 
customers, and is in no way inconsistent with the public interest; and the 
Commisson being of the opinion that the prayer of said application should be 
granted, and that the payment of said dividend should be approved and 
authorized: 

It is Therefore Adjudged, Ordered and Decreed, that Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted to 
pay a dividend of 25c per share on the Company's common stock represented 
by 2,788,445 shares without par value (including common stock outstanding 
and such additional common stock as may be issued under the provisions of the 
Merger Agreement between the Company and the City Gas Company of Nor- 
folk, dated June 9, 1930), payable on or about December 16, 1940, amounting 
to a sum not to exceed $697,111.25, provided, however, that the payment to be 
made hereunder shall not exceed the actual current net earnings available 
for such purpose. 

Provided, However, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this order 
without charge therefor, upon being furnished with the necessary copies by 
said Company; and 

Provided Further, that this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This the thirty-first day of October, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commission: 
By R. O. Self, Chief Clerk. 
Dockett No. 2097. 



88 N. C. Utilities Commission 

APPLICATION OF VIRGINIA PUBLIC SERVICE COMPANY FOR AP- 
PROVAL OF THE PURCHASE OF THE ELECTRIC DISTRIBUTION 
SYSTEM OF VIRGILINA, VIRGINIA, AND FOR CERTIFICATE OF CON- 
VENIENCE AND NECESSITY TO SERVE CUSTOMERS THROUGH SAID 
DISTRIBUTION SYSTEM RESIDING IN THE STATE OF NORTH CARO- 
LINA. 

Order 
This Matter comes before the Commission upon an application of the Vir- 
ginia Public Service Company, of Alexandria, Virginia, for approval of the 
purchase by said Company of the municipal electric distribution system of the 
Town of Virgilina, Virginia, and for a Certificate of Convenience and Neces- 
sity to serve customers residing in the State of North Carolina, which are now 
being served from the municipal plant at Virgilina and any new customers 
residing in contiguous territory. 

It appears from representations and Exhibits, including copy of bill of sale 
from the Town of Virgilina to the Virginia Public Service Company, dated 
23rd day of December, 1938, that the Town of Virgilina has agreed to sell to 
the Virginia Public Service Company all of the property owned or used by 
the said Town, in connection with the operation of its municipal electric plant, 
except the plant itself, including all of its poles, wires, insulators, cross arms, 
transformers, meters, and in general all of its equipment used or capable of 
being used in the operation of its electric plant excepting the electric plant. 

It further appears, and this Commission so finds, that the Town of Vir- 
gilina, located near the North Carolina line, has been serving customers resid- 
ing within North Carolina, and that if said purchase is approved that other 
customers residing in contiguous territory desire service from the Virginia 
Public Service Company. 

It further appears, and the Commission so finds, as a fact, that no other 
electric company is serving the territory in North Carolina which is now being 
served by the Town of Virgilina. 

Upon consideration of all the matters and things presented, the Commission 
finds as a fact that the Virginia Public Service Company is prepared to render 
the service needed and that the service is necessary for the convenience of the 
territory in question. 

Wherefore it is Ordered, that the sale of the properties hereinbefore enu- 
merated of the Town of Virgilina to the Virginia Public Service Company be 
and the same is hereby approved. 

It is further ordered that the Virginia Public Service Company is entitled 
to a Certificate of Convenience and Necessity and the same is hereby granted. 
It is further ordered that the rate schedules of the Virginia Public Service 
Company filed with the instant application, which are the standard schedules 
of said Company and which carry rates lower than are now being paid by the 
residents of North Carolina to the Town of Virgilina, are hereby approved. 
This the 20th day of February, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1544. 



Decisions and Adjustments of Complaints 89 

Carolina Power and Light Company to the Commission. Following rates filed 
and approved: 

Schedule R- 3. Residential Service. 

Rider No. 1. Rider No. 2. 
Schedule C- 5. Commercial Lighting. 
Schedule P-25. Commercial Service. 
Schedule P-26. Large Commercial Service. 

Rider No. 1. 
Schedule P-27. Textile Mills and Stanby & Supplemental Service Rider. 
Schedule P-31. Seasonal Cotton Gin Service. 
Schedule P-30. Paper and Pulp Mills, and Stanby & Supplemental 

Service Rider. 
Standard Rural Extension Plan R-4. Farm and Rural Residential or 

Small Commercial Service. Docket No. 1493. 
Schedule P-37. Ice Plant Service. 

Schedule SFL-1. Sports Field Lighting. Docket No. 1619, 
White Way Lighting. Ornamental Brackets. 

Ornamental Standards. 
Incandescent Street Lighting — Overhead System Company Ownership. 

Docket No. 1674. 
White Way Lighting. Ornamental Brackets Classification. Docket No. 

1717. 
Schedule XR-1. X-ray Equipment. Docket No. 1943. 
Schedule P- 4. Short Term and Seasonal Service. Docket No. 1973. 
Schedule P-18. Pumping Service to Water Companies. Docket No. 2073. 
Seasonal Service for non-profit religious and educational institutions. 
Docket No. 2105. 
Carolina Power and Light Company to the Commission. Contract for sale and 
transfer of power to the Ecusta Paper Corporation. Approved. Docket 
No. 1579. 
Carolina Power and Light Company. Application by J. H. Arnold and others 

for rural extension. Granted. Docket No. 1558. 
Carolina Power and Light Company. Application by Mrs. R. W. Davis, Cas- 
well County, for electric service in New Hope Church Section. Granted. 
Docket No. 2045. 
Carolina Power and Light Company. Complaint of service by Citizens of 

Ellerbe. Adjusted. Docket No. 1458. 
Carolina Power and Light Company. Application by Mrs. Jack Harris for 

extension of service. Adjusted. Docket No. 1515. 
Carolina Power and Light Company. Complaint of rates by W. O. Johnson. 

Adjusted. Docket No. 1430. 
Carolina Power and Light Company. Application by L. G. Marley, Siler 

City, for installation of service. Dismissed. Docket No. 1672. 
Carolina Power and Light Company. Request by Mary Purdie, White Oak, 
for extension of line from Elizabethtown to White Oak. Dismissed. Docket 
No. 1455. 
Carolina Power and Light Company. Application by A. H. Reagan, New Hill, 

for electric service. Dismissed. Docket No. 2015. 
Carolina Power and Light Company. Complaint of service by Annie S. Vir- 
den, Fayetteville. Adjusted. Docket No. 1736. 



90 N". C. Utilities Commission 

Carolina Power and Light Company. Complaint in re request for deposit for 

light by Lewis Walker Drug Store. Dismissed. Docket No. 1755. 
Carolina Power and Light Company. Complaint by Eva Warren, Bladenboro, 

of refusal of company to return deposit. Adjusted. Docket No. 1529. 
Carolina Power and Light Company. Application by J. N. Ziglar, Staley, for 

service. Adjusted. Docket No. 1730^. 
Duke Power Company to the Commission. The following rates filed and 
approved : 

General gas rates for Burlington, Charlotte, Greensboro, High Point, 

Mount Airy, Salisbury, and Winston-Salem. Docket No. 1620. 
Complete set of rates. Docket No. 1621. 

Commercial Lighting and Power Service 50 kw. and over. Schedule C. 
Docket No. 1689. 
Duke Power Company to the Commission. Regulations in re fluorescent 

lamps. Approved. Docket No. 2094. 
Duke Power Company. Complaint of rates by Carolina Rubber Hose Com- 
pany. Adjusted. Docket No. 1285. 
Duke Power Company. Application by Mrs. R. C. Cathey, Charlotte, for elec- 
tric service. Dismissed. Docket No. 1714. 
Duke Power Company. Complaint by Louise Goodwin of bills rendered at end 

of month, not in keeping with contract. Adjusted. Docket No. 1457. 
Duke Power Company. Application by Mrs. W. E. Hagler, Charlotte, for serv- 
ice. Dismissed. Docket No. 1803. 
Duke Power Company. Application by W. S. Hodgin, Greensboro, for electric 
service on Coltrane Mill Road, Guilford County. Adjusted. Docket No. 1371. 
Duke Power Company. Complaint by N. Collin Hughes of charge for replace- 
ment of fuses. Adjusted. Docket No. 1805. 
Duke Power Company. Application by Frank D. Bell for installation of 
electric water heating at Camp Mondarin, Tuxedo. Adjusted. Docket No. 
2017. 
Duke Power Company. Application by Mrs. Chester Nixon, Stanley, for exten- 
sion of service on Mount Holly-Denver Road. Dismissed. Docket No. 1564. 
Duke Power Company. Request by M. O. Taylor, Siloam, for testing of meter. 

Dismissed. Docket No. 1559. 
Duke Power Company. Application by Mrs. J. J. Thomas, Reidsville, for 
extension of line on old Leaksville-Reidsville road to her home. Dismissed. 
Docket No. 1807. 
Duke Power Company. Request by John H. Walker, Bessemer City, for light- 
ing service. Denied. Docket No. 1465. 
Durham Public Service Company to the Commission. The following rates filed 
and approved: 

Commercial Lighting Service. (C) 
Domestic Electric Service. (D) Docket No. 1489. 
Commercial Lighting Service. Schedule C. 
Commercial Lighting and Power Service. Schedule K. 
Residential Electric Service. Schedule D. 

Storage Water Heating Service. Schedule W. Docket No. 1774. 
Durham Public Service Company to the Commission. Regulations in fluorescent, 
lamps. Approved. Docket No. 2094. 



Decisions and Adjustments of Complaints 91 

Durham Public Service Company. Application by Julian Hester, Creedmoor, for 
electric current at residence. Dismissed. Docket No. 1976. 

East Tennessee Light and Power Company to the Commission. The following 
rates filed and approved: 
Domestic Service Rate. A-5-C. 
General Service Rate. Cp-C. 
Large Lighting and Power Service Rate. LLP-1. 
Large Power Service Rate. S-l. 
Primary Power Service Rate. P-l. Docket No. 1716. 

Elizabeth City Public Utility Commission. Application by M. B. Simpson for 
service. Dismissed for want of jurisdiction. Docket No. 1404. 

Hominy Light and Power Company to the Commission. Rates filed but not final 
and same not approved. Docket No. 1421. 

Laurel Hill Electric Company to the Commission. Rates for commercial users 
filed and approved. Docket No. 2016. 

Laurel Hill Electric Company. Complaint of excessive rates and discrimina- 
tion. Adjusted by revision of rates. Docket No. 1773. 

Linville River Power Company to the Commission. Rates for Crossnore filed 
and approved. Docket No. 1955. 

Nantahala Power and Light Company to the Commission. Application by 
Highlands Nantahala Company for certificate of convenience and necessity 
to dispose of its electric properties to Nantahala Power and Light Company 
and application of company to purchase same. Dismissed. Docket No. 1428. 

Nantahala Power and Light Company to the Commission. Check on and ap- 
proval of rates on file. Docket No. 1682. 

Nantahala Power and Light Company to the Commission. The following rates 
filed and approved: 

Rates for power and users of large quantities of electric energy. Docket 

No. 1707. 
Commercial service. Schedule "CS." 
Industrial Use of electric energy. Schedule "PL." 
Small Miscellaneous Power. Schedule "PS." Docket No. 1732. 

Nantahala Power and Light Company. Petition from Residents in Vicinity 
of Cherokee Indian Reservation for extension of line to Cherokee community 
and for electric energy. Dismissed. Docket No. 1601. 

Nantahala Power and Light Company. Application by H. F. Carpenter, Rob- 
binsville, for electric service for Robbinsville Community. Dismissed. 
Docket No. 2052. 

Northwest Carolina Utilities Company. Complaint by citizens of Bradshaw 
Township of unsatisfactory service. Dismissed. Docket No. 2029. 

Northwest Carolina Utilities Company. Request by J. R. Deaver, Marshall, 
for electric service. Granted. Docket No. 1756. 

Northwest Carolina Utilities Company. Complaint by W. F. Eller, Raleigh, of 
defective electric lighting system in home of brother in Ashe County. Dis- 
missed. Docket No. 1680. 

Northwest Carolina Utilities Company. Complaint by A. J. Fletcher of service 
in summer home near Jefferson insufficient for electric range. Adjusted. 
Docket No. 2000. 

Northwest Carolina Utilities Company. Complaint of service by Town of 
Mars Hill. Adjusted. Docket No. 1799. 



92 !N". C. Utilities Commission 

Pamlico Ice and Light Company to the Commission. The following rates filed 
and approved: 

Commercial Service Rate. 
Residential Service Rate. 
Residential and Farm Rate. Docket No. 1517. 
Pamlico Ice and Light Company to the Commission. Application for authority 
to eliminate necessity of installation of range, refrigerator, and/or water 
heater for best residential rate. Approved. Docket No. 1808. 
Pinehurst, Inc. Complaint by Frank H. Krebs of electric rates. Adjusted by 

filing and approval of new rates. Docket No. 1488. 
Roanoke Utilities Company, Inc., to the Commission. Rates for connection or 
disconnection charge and meter lease charge filed and approved. Docket 
No. 1540. 
Roanoke Utilities Company, Inc., to the Commission Rates on Government 

Camp Lighting. Approved. Docket No. 2102. 
Roanoke Utilities Company, Inc. Complaint by G. M. Rogers, Jr., Manteo, of 

service. Dismissed. Docket No. 1802. 
Rocky River Improvement Company. Complaint by State Board of Education 
in re electric energy rate for Odell School. Dismissed. Docket No. 1699. 
Rozelle Light and Improvement Company. Complaint by M. A. Correll, Kan- 

napolis, of electric service. Adjusted. Docket No. 1450. 
Smoky Mountain Power Company. Complaint by Jackson County Superintend- 
ent of Public Instruction of defect in electric meter in Qualla Elementary 
School. Dismissed. Docket No. 2027. 
Smoky Mountain Power Company. Complaint of rate by C. F. Myers, Bryson 

City. Dismissed. Docket No. 1651. 
Smoky Mountain Power Company. Request by Ocona Cash Store and Service 

Station at Whittier for inspection of meter. Adjusted. Docket No. 1532. 
Smoky Mountain Power Company. Complaint of overcharge by Clarence 

Rogers, Whittier. Dismissed. Docket No. 1738. 
Tide Water Power Company to the commission. The following rates filed and 
approved: 

Breakdown and Standby Service. Docket No. 1557. 

Commercial Lighting — New Hanover County. 

Residential Lighting — New Hanover County. 

Commercial Lighting — Transmission System. 

Residential Lighting — Transmission System. Docket No. 1566. 

Cooking — Schedule 25. 

Sign and Display Lighting — Schedule 17. Docket No. 1583. 

Commercial Cooking Rate. Docket No. 1718. 

Fertilizer Power Rate. Docket No. 2056. 

Ice Making and Refrigeration Plants. Docket No. 1636. 

Rules and Regulations Governing Furnishing and use of Power Service. 

Docket No. 1637. 
Textile Power Rates — Schedule No. 11. Docket No. 1494. 
Tide Water Power Company. Complaint by the Town of Beaufort of rates 

and request for New Hanover Rates. Adjusted. Docket No. 1613. 
Tide Water Power Company. Complaint by Alexander Boon, Jr., Wilmington, 
of cost for construction of electric light line to residence in Winter Park. 
Adjusted. Docket No. 1957. 



Decisions and Adjustments of Complaints 93 

Tide Water Power Company. Complaint by Citizens of Burgaw of service. 

Adjusted. Docket No. 1730. 
Tide Water Power Company. Complaint by R. W. Dail, Snow Hill, of rates 

for water for ice factory. Dismissed. Docket No. 1993. 
Tide Water Power Company. Complaint by W. L. Farmer, Wilmington, of 

rates. Adjusted. Docket No. 1453. 
Tide Water Power Company. Complaint of R. F. Fink, Rocky Point, in re 
discrimination in rates for electric current to run grist mill. Dismissed. 
Docket No. 1629. 
Tide Water Power Company. Application of J. T. Hardison and Son, Washing- 
ton, for gas service. Dismissed. Docket No. 1693. 
Tide Water Power Company. Refusal by D. A. Lockfaw, Wilmington, to pay 

interest on deposit covering guarantee for service. Docket No. 1530. 
Tide Water Power Company. Complaint of H. S. Gibbs, Mayor, Morehead City, 
of excessive rates, and request for New Hanover Rates. Adjusted. Docket 
No. 1588. 
Tide Water Power Company. Complaint of W. H. Morton, Beaufort, in re 

radio interference. Dismissed. Docket No. 1702. 
Tide Water Power Company. Request of Town of Rose Hill for installation of 
current to operate deep well pump to provide water for water and sewer 
system. Dismissed. Docket No. 1589. 
Virginia Electric and Power Company to the Commission. The following rates 
filed and approved: 

County Electric Service. 

Industrial Service Rate. Schedules Nos. 9 and 10. 

Municipal Electric Service: 

Miscellaneous Light and Power. 
Street and Highway Lighting Service. 
Traffic Lighting Service. Docket No. 1462. 
Commercial Lighting Service Rates — Schedule 200. 
Residential Service Rates — Schedule 100. Docket No. 1709. 
Revised Rates Schedules. 
Revised Rider — I — Breakdown, Relay or Parallel Operation Service. 

Docket No. 1787. 
General Service Rate. Schedule No. 9. 
General Service Rate. Schedule No. 10. 
Rider for Seasonal Service. Rider A. Docket No. 2074. 
Virginia Electric and Power Company to the Commission. Revised Standard 
form of agreement for purchase of electric service from Company. Approved. 
Docket No. 1499. 
Virginia Electric and Power Company to the Commission. Revised forms for 
Municipal Electric Service and County Electric Service. Approved. Docket 
No. 1501. 
Virginia Electric and Power Company to the Commission. Application for 
authority to withdraw and cancel Form "C" plan. Approved. Docket No. 
1665. 
Virginia Electric and Power Company. Complaint of rates by Public Schools 

of Gates County. Adjusted. Docket No. 1448. 
Virginia Electric and Power Company. Application by Town of Rich Square 
for reduction in rates for street lighting. Dismissed. Docket No. 1696. 



94 N\ C. Utilities Commission 

Virginia Electric and Power Company. Complaint of Mrs. S. C. Vann, Mur- 

freesboro, in re service. Adjusted. Docket No. 1821. 
Virginia Electric and Power Company. Request by R. E. White, Aulander, for 

rates for rural electric associations in Bertie-Hertford Section. Dismissed. 

Docket No. 1681. 
Virginia Electric and Power Company. Complaint of Town of Winton in re 

street lighting rates. Adjusted. Docket No. 1449. 

Express Companies 

Railway Express Agency, Inc., to the Commission. Application for authority 

to close agency at Balsam. Withdrawn. Docket No. 1625. 
Railway Express Agency, Inc., to the Commission. Application for authority 

to close agency at Germanton. Granted. Docket No. 1510. 
Railway Express Agency, Inc., to the Commission. Application for authority 

to close agency at Jamesville. Granted. Docket No. 1690. 
Railway Express Agency, Inc., to the Commission. Application for authority 

to close agency at Jonesboro. Granted. Docket No. 2061. 
Railway Express Agency, Inc., to the Commission. Application for authority 

to close agency at Newell. Granted. Docket No. 1622. 
Railway Express Agency, Inc., to the Commission. Application for authority 

to close office in A. & Y. depot at Walnut Cove. Granted. Docket No. 1631. 

Gas Companies 

APPLICATION FOR PERMISSION TO MERGE GASTONIA & SUBURBAN 
GAS COMPANY AND CONCORD & KANNAPOLIS GAS COMPANY INTO 
ONE CORPORATION, TO BE KNOWN AS PUBLIC SERVICE COMPANY 
OF NORTH CAROLINA, INCORPORATED. 

Order 

This Cause arises upon the application of the petitioner named above to 
merge the Gastonia and Suburban Gas Company and the Concord and Kan- 
napolis Gas Company into one corporation to be known as Public Service Com- 
pany of North Carolina, Incorporated. 

By this merger the total outstanding capital stock of the two previously 
existing corporations will not be increased and no additional or other powers 
are requested than have heretofore existed in the two companies. The merger 
agreement, a copy of which has been filed here as Exhibit A, together with all 
acknowledgments pertaining thereto and copies of minutes of the respective 
companies, has been filed with the Secretary of State so as to constitute the 
name of the merged corporation as Public Service Company of North Carolina, 
Incorporated. The petitioner has also filed with this Commission copies of 
resolutions adopted by each of the companies, both by their stockholders and 
Boards of Directors. And it appears that all acts required by law with reference 
to such merger have been complied with. Therefore, it appears that there is 
nothing further necessary that the petitioners do prior to the granting of the 
authority asked by this petition. The companies being consolidated have 
been owned for a long time by the same interests, and it is believed that 
public convenience and necessity will be enhanced by the granting of this 
application, in that the new company will not have authorized common 



Decisions and Adjustments of Complaints 95 

capital stock in excess of the aggregate $250,000 which is now the combined 
capital of the companies which are being merged. Therefore, it is 

Ordered that the petition be granted effective at the beginning of business, 
January 1, 1939. 

This, the 31st day of December, 1938. 

(S) Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commission: 
(s) R. 0. Self, Chief Clerk. 
Docket No. 1492. 

IN THE MATTER OP THE APPROVAL OP THE RECORD OF PROPER- 
TIES AND ACCOUNTS OF NATIONAL UTILITIES COMPANY OF NORTH 
CAROLINA, INCORPORATED. 

Order 

This Cause, coming on to be heard before Stanley W. Winborne, Utilities 
Commissioner of North Carolina, and being heard upon the Verified Petition 
filed in this cause, together with the exhibits attached thereto and referred to 
therein; and it appearing to the Court, for good cause shown, after a bona fide 
appraisal, that the capital accounts of National Utilities Company of North 
Carolina, Incorporated, were increased or written up in the amount of Sixteen 
Thousand, One Hundred Ninety-four and 94/100 ($16,194.94) Dollars, of 
which amount the sum of Nine Thousand, One Hundred Ninety-four and 94/100 
($9,194.94) Dollars is accounted for by an allotment to reserves for retirement 
and Seven Thousand ($7,000.00) Dollars was allotted to capital stock 
liability. 

It is found by the Utilities Commissioner that such modifications of the 
capital accounts of Petitioner are justified by the values shown in its appraisal 
and in keeping with modern accounting for utility companies. 

It is therefore ordered that the Petition be, and the same is hereby granted 
and the changes in the capital accounts of Petitioner be, and the same are 
hereby ratified and approved as of September 1, 1938, the date the same 
were made. 

This August 8, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

By Order of the Commission: 

(Signed) R. O. Self, Chief Clerk. 

Docket No. 1676. 



96 1ST. C. Utilities Commission 

APPLICATION OP PUBLIC SERVICE COMPANY OF NORTH CAROLINA, 
INC. TO CONSOLIDATE THE MORTGAGES CREATED BY THE INDEN- 
TURES OF THE CONCORD AND KANNAPOLIS GAS COMPANY AND GAS- 
TONIA AND SUBURBAN GAS COMPANY DATED AS OF FEBRUARY 1, 
1937, AND TO MODIFY AND AMEND THE PROVISIONS OF THE SAID IN- 
DENTURES AS PROVIDED IN A CERTAIN SUPPLEMENTAL TRUST 
INDENTURE FROM PUBLIC SERVICE COMPANY OF NORTH CARO- 
LINA, INC., TO COLONIAL TRUST COMPANY AND RUSSELL J. 
SHARPE, AS TRUSTEE, DATED AS OF FEBRUARY 1, 1939. 

Order 

This Cause arises upon the application of Public Service Company of North 
Carolina, Inc., to consolidate the mortgages created by the Indentures of the 
Concord and Kannapolis Gas Company and Gastonia and Suburban Gas Com- 
pany dated as of February 1, 1937, and to modify and amend the provisions of 
said Indentures as provided in a certain proposed Supplemental Indenture 
from Public Service Company of North Carolina to Colonial Trust Company 
and Russell J. Sharpe, dated as of February 1, 1939. By this consolidation of 
the mortgages, the indebtedness of the Petitioner will not be increased, as 
the Petitioner is already liable for the $70,000 face amount of First Mort- 
gage Bonds due 1952 of the Concord and Kannapolis Gas Company and the 
$97,000 face amount of First Mortgage Bonds due 1952 of the Gastonia and 
Suburban Gas Company issued under said Indentures. A copy of the proposed 
Supplemental Indenture has been filed here, attached to the said petition as 
Exhibit "E." There have also been filed here copies of the communications 
sent by the Petitioner to the holders of such Gastonia and such Concord bonds, 
and copy of the form of consent to such consolidation of the mortgages re- 
quested from such holders of bonds. The Petitioner has also represented that 
the consent and approval of the holders of all of said Concord bonds and all 
but $4,000 of Gastonia bonds to the proposed consolidation has been secured, 
and that Petitioner will either secure the consent of the remaining $4,000 
of Gastonia bonds or otherwise satisfy any legal requirements occasioned by 
the failure to secure the consent of such bonds. 

No approval is asked at this time by the Petitioner to issue bonds under 
such Supplemental Indenture, other than for the purpose of exchange with 
the present holders of the Concord bonds and the Gastonia bonds, amounting 
in the aggregate to $167,000 face amount. 

It is believed that public convenience and necessity will be enhanced by the 
granting of this application, in that the Petitioner will have a single issue of 
not more than $167,000 face amount of First Mortgage Bonds secured by a 
lien upon all of its properties, in lieu of two separate smaller liens in the 
amounts of $70,000 and $97,000, respectively, and further in that the Petitioner 
by the amendment and modification of the said Indentures as provided in 
such proposed Supplemental Indenture, will be in a position more easily to 
finance property improvements and acquisitions of property through the issue 



Decisions and Adjustments of Complaints 97 

of additional bonds in accordance with and subject to the terms and provisions 
of said proposed Supplemental Indenture. Therefore, it is 
Ordered that the petition be granted, effective immediately. 
This, the 2nd day of June, 1939. 
By Order of the Commission: 

(S) Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1624. 

APPLICATION OF PUBLIC SERVICE COMPANY OF NORTH CAROLINA, 
INC., TO MODIFY THE ORDER ENTERED HEREIN DECEMBER 31, 
1938, ON THE PETITION OF GASTONIA AND SUBURBAN GAS COM- 
PANY AND CONCORD AND KANNAPOLIS GAS COMPANY. 

Order 

This Cause arises upon the application of the Petitioner above named to 
modify the order entered herein December 31, 1938, on the Petition of Gas- 
tonia and Suburban Gas Company and Concord and Kannapolis Gas Com- 
pany. 

The Petition suggests that certain recitals appearing in such order are 
capable of misinterpretation, and in order to avoid such possibility and to 
make such recitals more accurate, it is 

Ordered, that the said Order entered herein December 31, 1938, be and the 
same hereby is amended so as to read as follows: 

"This cause arises upon the application of the Petitioner above named to 
merge the Gastonia and Suburban Gas Company and the Concord and Kan- 
napolis Gas Company into one corporation to be known as Public Service 
Company of North Carolina, Incorporated. 

"By this merger the total outstanding capital stock of the two previously 
existing corporations will not be increased, and the immediate exercise of no 
additional or other powers is requested than have heretofore been exercised 
by the two companies. The merger agreement, a copy of which has been filed 
here as Exhibit A, together with all acknowledgments pertaining thereto 
and copies of minutes of the respective companies, has been filed with the 
Secretary of State so as to constitute the name of the merged corporation as 
Public Service Company of North Carolina, Incorporated. The Petitioner has 
also filed with this Commission copies of resolutions adopted by each of the 
companies, both by their stockholders and Boards of Directors. And it appears 
that all acts required by law with reference to such merger have been com- 
plied with. Therefore, it appears that there is nothing further necessary that 
the Petitioners do prior to the granting of the authority asked by this Petition. 
The companies being consolidated have been owned for a long time by the 
same interests, and it is believed that public convenience and necessity will be 
enhanced by the granting of this application, in that the new company will not 
have presently outstanding common capital stock in excess of the aggregate 
$110,000 which is now the combined capital of the companies which are being 
merged. Therefore, it is 



98 N". C. Utilities Commission 

"Ordered, that the petition be granted effective at the beginning of business, 
January 1, 1939." 

This, the 2nd day of June, 1939. 
By Order of the Commission: 

(S) Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1624. 

APPLICATION FOR PERMISSION TO MERGE PUBLIC SERVICE COM- 
PANY OP NORTH CAROLINA, INC., AND NATIONAL UTILITIES COM- 
PANY OF NORTH CAROLINA INTO ONE CORPORATION TO BE 
KNOWN AS PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INC., 
AND FOR AUTHORITY TO PUBLIC SERVICE COMPANY OF NORTH 
CAROLINA, INC., TO ISSUE $85,000 PRINCIPAL AMOUNT OF ITS FIRST 
MORTGAGE BONDS 5 PER CENT SERIES DUE 1952, AND 420 SHARES 
OF ITS CAPITAL STOCK. 

Order 
This Cause arises upon the application of Public Service Company of North 
Carolina, Inc., and National Utilities Company of North Carolina, for 
authority to effect a merger whereby National Utilities Company of North 
Carolina will be merged into Public Service Company of North Carolina, Inc. 
By this merger, the number of shares of outstanding capital stock of the 
two corporations will not be increased and no additional or other powers are 
requested than have heretofore existed in the two companies. 

The number of shares of authorized capital stock of Public Service Com- 
pany of North Carolina, Inc., the successor corporation, is to be increased 
from 2,500 shares to 10,000 and the shares of capital stock are to be changed 
from shares having a par value of $100 each to shares without nominal or 
par value. 

A copy of the merger agreement which is dated as of August 1, 1939, between 
the two corporations and a majority of the Directors thereof, together with 
all consents and acknowledgments pertaining thereto and copies of the min- 
utes of the respective companies, has been filed here as Exhibit "A" to the 
petition of the said corporations. 

The original Merger Agreement has been or will be filed with the Secretary 
of State and the Clerks of the Superior Courts of Gaston, Cabarrus and Ire- 
dell counties. It appears that all acts required by law with reference to such 
merger have been complied with, excepting only the filing of the said Agree- 
ment of Merger with the Secretary of State and the said Clerks of the Supe- 
rior Courts of the above mentioned counties. 

The companies being consolidated have been owned for some time by sub- 
stantially the same interests, and it is believed that public convenience and 
interest will be enhanced by the granting of this application. 
Wherefore, it is 

Ordered, that the petition of the said Public Service Company of North Caro- 
lina, Inc., and National Utilities Company of North Carolina, be and the same 
hereby is granted; and without in any way limiting the effects of the fore- 
going, the acquisition of the assets of National Utilities Company of North 
Carolina by Public Service Company of North Carolina, Inc., by means of 
such merger of the two corporations be and the same hereby is approved, 



Decisions and Adjustments of Complaints 99 

and Public Service Company of North Carolina, Inc., be and hereby is author- 
ized to issue $85,000 additional principal amount of its first mortgage bonds, 
5 per cent Series due 1952 and 420 shares of its capital stock in connection 
therewith; and Public Service Company of North Carolina, Inc., and National 
Utilities Company of North Carolina be and they hereby are authorized to 
take any and all steps or proceedings necessary or desirable to effect the 
merger of the two corporations in accordance with the said Agreement of 
Merger, dated August 1, 1939, and the issuance of the additional bonds and 
stocks as approved herein. 

The granting of the said petition and the authority herein given shall be 
effective forthwith, and upon completion of the filing of the said agreement 
of merger with the Secretary of State and the Clerks of the Superior Court 
of Gaston, Cabarrus and Iredell counties, such acquisition of assets by Public 
Service Company of North Carolina, Inc., and the issuance of the securities 
herein authorized shall be recorded upon the books of account of said Public 
Service Company of North Carolina, Inc., in so far as practicable and feasible 
as of August 1, 1939. 



This the 14th day of August, 1939. 



(Signed) Stanley Winborne, 

Utilities Commissioner. 



By Order of the Commission: 

(Signed) R. O. Self, Chief Clerk. 
Docket No. 1677. 

APPLICATION OF PUBLIC SERVICE COMPANY OF NORTH CAROLINA, 
INC., TO ACQUIRE SUBSTANTIALLY ALL OF THE ASSETS AND 
BUSINESS OF THE ASHEVILLE GAS COMPANY AND RALEIGH GAS 
COMPANY AND THE DURHAM GAS COMPANY. 

Order 

This Cause arises upon the application of Public Service Company of North 
Carolina, Inc., for authority to acquire from Mr. C. B. Zeigler, substantially 
all the assets and property of The Asheville Gas Company, The Durham Gas 
Company and The Raleigh Gas Company, and in such connection to issue an 
additional $998,000 aggregate principal amount of its First Mortgage Bonds 
5 Per Cent Series Due 1952, 8,480 shares of its capital stock without nominal 
or par value and to record on its books of account the property so to be 
acquired at an amount substantially less than the amount at which such 
properties were carried on the books of The Raleigh Gas Company, The Dur- 
ham Gas Company and The Asheville Gas Company, such new amounts being 
supported by and in accordance with a certain report of Loeb & Eames, Inc., 
dated June 9, 1939, a copy of which report has been filed with this Commission 
by the petitioner and to take any and all other steps necessary to effect the 
acquisition of such properties and the issuance of the bonds and stock above 
set forth. 

After such acquisition of properties has taken place and after the properties 
so acquired have been recorded on the books of account of the petitioner 
at the amounts proposed, the properties so to be acquired will be carried on 
the books of the Utility Company operating such properties at $885,220, less 
than they are presently being carried on the books of the Asheville, Raleigh, 



100 N. C. Utilities Commission 

and Durham companies and the accrued depreciation recorded on the books 
of such company with respect to such properties will be $100,965, more than 
the accrued depreciation presently recorded on the books of the Durham, 
Asheville and Raleigh companies, so that the net figure of the fixed property 
less accrued depreciation to be recorded on the books of the Utility Company 
operating such properties will be $986,185 less than at the present. The fore- 
going figures are as of March 31, 1939, and are subject to proper adjustment 
for property, additions and retirements subsequent to that date. 

The detail figures with respect to the liabilities and property accounts of the 
companies whose properties are to be acquired compared with the proposed 
liabilities and property accounts of your petitioner are as follows : 

Presently outstanding capital stock of the three companies whose 

assets are to be acquired $1,985,451.50 

Presently outstanding notes payable of the three companies whose 

properties are to be acquired 431,904.00 

Presently outstanding bonds of the three companies to be 

acquired 800,000.00 

Accrued interest on outstanding obligations of the three com- 
panies to be acquired to December 31, 1938 160,244.04 

Total $3,377,599.54 

To be issued by petitioner in connection with the acquisition of 

such properties: 

First Mortgage Bonds 5 Per Cent Series Due 1952 $ 998,000.00 

Capital Stock without nominal or par value 8,480 shares to be set 

up on the books of the Company as a capital liability 8,480.00 

Total - ..$1,006,480.00 

Combined book values of the fixed properties of the three com- 
panies whose properties are to be acquired 3,508,957.00 

Accrued depreciation on the fixed property of the three companies 

whose property is to be acquired 431,742.00 

Amount at which fixed properties are proposed to be recorded on 

the books of the petitioner 2,623,737.00 

Accrued depreciation with respect thereto proposed to be recorded 

on the books of the petitioner 532,707.00 

It is believed that public convenience and interest will be enhanced by the 
granting of this application of the petitioner for the acquisition of substan- 
tially all of the assets and property of the Raleigh Gas Company, The Dur- 
ham Gas Company and The Asheville Gas Company. 
Wherefore, it is 

Ordered, that the petition of the said Public Service Company of North 
Carolina, Inc., be and the same hereby is granted and without in any way 
limiting the effect of the foregoing: 

1. The acquisition of substantially all of the assets of The Raleigh Gas 
Company, The Durham Gas Company, and The Asheville Gas Company 
from Mr. C. B. Zeigler, be and the same hereby is approved; 



Decisions and Adjustments of Complaints 101 

2. Public Service Company of North Carolina, Inc., be and hereby is 
authorized to issue in connection with the acquisition of such properties 
$998,000 aggregate principal amount of its First Mortgage Bonds 5 Per 
Cent Series due 1952, in addition to those presently outstanding and 8,480 
shares of its capital stock, and to pay a sum in cash in addition aggregat- 
ing $3,226.19, for each month from January 1, 1939, to the date of such 
acquisition; 

3. Public Service Company of North Carolina, Inc., and its officers 
and directors are further authorized to take any and all steps or pro- 
ceedings necessary or desirable to effect such acquisition of such prop- 
erties and the issuance of the said bonds and stock and the payment of 
such amount of cash as approved herein; 

4. Public Service Company of North Carolina, Inc., be and hereby is 
authorized and directed, upon the acquisition of such properties, to 
record on its books the property, plant and equipment at an aggregate 
amount of $2,623,737, subject to adjustment for property, additions and 
retirements subsequent to March 31, 1939, and to record on its books 
accrued depreciation applicable to such property so to be acquired at an 
aggregate amount of $532,707 plus accrued depreciation subsequent to 
March 31, 1939, at 12y 2 per cent of the total companies' sales, less actual 
expenditures for repairs and maintenance and less any charges to the 
reserve since March 31, 1939, by reason of retirement of property. 

5. The granting of this petition and the authority herein given shall be 
effective forthwith; and 

6. Upon completion of the acquisition of the said properties and the 
issuance of the securities herein authorized, such acquisition and the 
issuance of such securities shall be recorded upon the books of account of 
said Public Service Company of North Carolina, Inc., in so far as 
practicable and feasible as of September 1, 1939. 

This the 16th day of August, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
By Order of the Commission: 

(Signed) R. O. Self, Chief Clerk. 
Docket No. 1679. 

APPLICATION OP PUBLIC SERVICE COMPANY OF NORTH CAROLINA, 
INCORPORATED, FOR PERMISSION TO ISSUE AND SELL $15,000.00 
PRINCIPAL AMOUNT, PAR VALUE, FIRST MORTGAGE BONDS, 5 PER 
CENT SERIES, DUE 1952. 

Order 
This Cause arises upon the application of the Public Service Company of 
North Carolina, Incorporated, for permission to issue an additional principal 
amount of $15,000.00 par value of its First Mortgage Bonds, 5 Per Cent 
Series, due in 1952, under authority of and pursuant to the Supplemental 
Trust Indenture from Public Service Company of North Carolina, Incorporated, 
to Colonial Trust Company and Russell J. Sharpe, Trustees, dated as of 
February 1, 1939, and relating to and covering the property of Petitioner 
located within the State of North Carolina. 



102 JN". C. Utilities Commission 

From the verified Petition of Petitioner and the itemized exhibits attached 
thereto, it is found by the Utilities Commissioner of North Carolina: 

1. That as relates to the Gastonia and Concord divisions of Petitioner 
from February 1, 1937, to April 30, 1940, and as relates to the Statesville 
division of Petitioner from September 1, 1930, to April 30, 1940, Petitioner 
made Permanent Additions to its properties, after deducting all retire- 
ments, aggregating in value the amount of $20,066.31. 

2. That as relates to the earnings applicable to bond interest, it is 
found that the earnings of Petitioner applicable to bond interest for a 
period of twelve consecutive calendar months within the fifteen calendar 
months immediately preceding the date of this application for the issuance 
of additional bonds, were more than one and one-half times the interest 
requirements for a period of one year upon all presently outstanding 
bonds; and the additional bonds which are sought to be issued in this 
proceeding; and that Petitioner had earnings applicable to bond interest 
2.07 times the annual interest on bonds presently outstanding and for 
which issuance is now applied for. 

3. That the authority requested by Petitioner in this proceeding appears 
to be authorized by and in keeping with the provisions of the Supplemental 
Trust Indenture, hereinbefore referred to and that permission for the 
issuance of additional principal amount of $15,000.00 par value, First 
Mortgage Bonds, 5 Per Cent Series, due in 1952, ought to be granted. 

It is therefore Ordered and Adjudged by the Utilities Commissioner of the 
State of North Carolina : 

1. That Public Service Company of North Carolina, Incorporated, be, and 
it is hereby granted permission to issue and sell the additional principal sum 
of $15,000.00 par value, First Mortgage Bonds, 5 Per Cent Series, due 1952, 
under the authority and provisions of that certain Supplemental Trust Inden- 
ture heretofore executed by Public Service Company of North Carolina, Incor- 
porated, to Colonial Trust Company and Russell J. Sharpe, Trustees, as of the 
date, February 1, 1939. 

2. It is further ordered that Public Service Company of North Carolina, 
Incorporated, is authorized and permitted to sell said bonds at not less than 
80 per cent of their par value; and if it is found necessary or convenient so to 
do, Petitioner has full power and authority to pledge said bonds as security for 
a bank loan until the same shall be sold. 

3. It is further ordered that the granting of the Petition in this proceeding 
and the authority herein given shall be effective forthwith. 

This the 1st day of July, 1940. 
By Order of the Commission: 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
(Signed) R. O. Seef, Chief Clerk. 

"" Docket No. 2010. 



Decisions and Adjustments of Complaints 103 

APPLICATION OF C. B. ZEIGLER TO ACQUIRE SUBSTANTIALLY ALL 
OF THE ASSETS AND BUSINESS OF THE ASHEVILLE GAS COM- 
PANY, THE DURHAM GAS COMPANY, AND THE RALEIGH GAS 
COMPANY. 

Order 
This Cause arises upon the application of C. B. Zeigler for authority to 
acquire substantially all of the assets and business of The Asheville Gas 
Company, The Durham Gas Company and The Raleigh Gas Company. Mr. 
C. B. Zeigler is a director, stockholder and the President of Public Service 
Company of North Carolina, Inc., a North Carolina Corporation owning and 
operating gas plants and distribution systems in Statesville, Gaston, Dallas, 
Concord and Kannapolis, North Carolina. It appears that Mr. C. B. Zeigler has 
entered into an arrangement with Public Service Company of North Carolina, 
Inc., whereby the assets and businesses so to be acquired by him will in turn 
be transferred by him to Public Service Company of North Carolina, Inc. 

Wherefore it is Ordered that the petition of the said C. B. Zeigler be and the 
same hereby is granted. 

Without in any way limiting the effect of the foregoing, the acquisition of 
substantially all the assets of The Asheville Gas Company, The Durham Gas 
Company, and The Raleigh Gas Company by the said C. B. Zeigler be and the 
same hereby is approved, and the said C. B. Zeigler is also authorized to 
transfer and deliver such assets so acquired by him to Public Service 
Company of North Carolina, Inc. 

The granting of the said petition and the authority herein given shall be 
effective forthwith. 
This, August 16, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
By Order of the Commission: 

(Signed) R. 0. Self, Chief Clerk. 
Docket No. 1678. 

Atlantic Gas Corporation. New organization to take over stock and securities 
of North Carolina Gas Company, Henderson and Oxford Gas Company, and 
Elizabeth and Suburban Gas Company, owned by National Public Utilities 
Corporation. Docket No. 1956. 

Elizabeth and Suburban Gas Company to the Commission. Rate Schedule for 
prepayment meter service. Approved. Docket No. 1593. 

Henderson and Oxford Gas Company to the Commission. Rate schedule for 
prepayment meter service. Approved. Docket No. 1594. 

National Public Utilities Corporation to the Commission. Application for 
approval of transfer from National Public Utilities Corporation to Pennsyl- 
vania and Southern Gas Company securities of North Carolina Gas Com- 
pany. Approved. Docket No. 1956. 

Public Service Company of North Carolina, Inc., to the Commission. Rates for 
Concord, Gastonia and Statesville. Approved. Docket No. 1998. 



104 N". C. Utilities Commission 

Housing Authority 

APPLICATION OF THE HOUSING AUTHORITY OP THE CITY OP CHAR- 
LOTTE, NORTH CAROLINA, TO THE UTILITIES COMMISSIONER OF 
THE STATE OF NORTH CAROLINA FOR A CERTIFICATE OF PUBLIC 
CONVENIENCE AND NECESSITY AND FOR AUTHORITY TO EXER- 
CISE THE RIGHT OF EMINENT DOMAIN. 

Order and Certificate 
This Matter came on for hearing before the Utilities Commissioner of 
North Carolina on this 20th day of June, 1939, and being heard on the applica- 
tion of the Housing Authority of the City of Charlotte, North Carolina, for 
approval of the Charlotte, North Carolina, Housing Project numbered 
NC-3-1, 3-2, and for the issuing and granting of a certificate of public con- 
venience and necessity for said project and projects and for the authority to 
exercise the right of eminent domain when required by said Authority in the 
acquirement of property to be used in the development of the Housing Project 
or projects in said city; and after hearing and considering the entire matter 
and considering the application together with the record and several exhibits 
filed and presented therewith, and after hearing the oral testimony taken at 
the hearing, and after investigating and examining said matter and records 
and facts, and after giving due consideration to the same, as well as to the oral 
testimony offered, and after giving due consideration to the law, the Commis- 
sion finds, concludes, determines and orders as follows: 

Findings of Facts 

1. That prior to the creation and organization of the Housing Authority of 
the City of Charlotte, the governing body of said city being interested in pro- 
viding better housing conditions in said city and in determining the extent 
of slum conditions existing in said city, made a study of local housing condi- 
tions with special consideration to housing conditions prevailing among fami- 
lies of low income. 

2. That on the 2nd day of November, 1938, more than twenty-five residents 
of the City of Charlotte filed a petition with the Clerk of the City of Charlotte 
setting forth that there was a need for a Housing Authority to function in the 
City of Charlotte and surrounding area, all according to Section 6243(4) of 
the Housing Authorities Act of North Carolina of 1935. 

3. That upon the filing of the said petition the Clerk of the City of Char- 
lotte, as required by said Section 6243(4) referred to above, gave notice of 
time, place, and purpose of a public hearing at which the governing body of 
the City of Charlotte, namely the Councilmen of said city, would determine 
whether there existed the need for a Housing Authority in said city and 
surrounding area. 

4. That the date fixed for said hearing was the 30th day of November, 
1938, and hour 4:00 o'clock p.m., and the place the Council Chamber of the 
City of Charlotte; that at said time and place a large number of residents and 
taxpayers of said city and surrounding area assembled and they and all other 
interested persons were given an opportunity to be heard; that at said meet- 
ing and hearing many persons were heard and there was full, free, and exten- 
sive discussion of a proposed housing program with a three-fold purpose of 



Decisions and Adjustments of Complaints 105 

slum-clearance, low-rent-housing, and proper long time planning for the City 
of Charlotte and surrounding area. 

5. That following said public hearing on the 30th day of November, 1938, 
the Council of the City of Charlotte, being the governing body thereof, adopted 
and passed a resolution which determined, inter alia, as follows: 

"1. That insanitary and unsafe inhabited dwelling accommodations existed 
in the City of Charlotte, North Carolina; and 

"2. There is a lack of safe and sanitary dwelling accommodations in the 
City of Charlotte, North Carolina, available for all the inhabitants thereof." 

6. That in compliance with the law the Mayor of the City of Charlotte 
appointed the Commissioners of the Housing Authority of the City of Char- 
lotte whose names appear in Section VII of application for the terms of office 
set out therein. 

7. That the Housing Authority of Charlotte after being duly created and or- 
ganized, entered upon its duties, first making a careful survey, analysis, and 
study of the housing conditions in Charlotte, both for white people and for 
Negroes. The survey disclosed a large number of insanitary, unfit, and unsafe 
inhabited dwellings in the City of Charlotte, necessarily occupied by families 
of low income because of a drastic house shortage. 

8. That in connection with its work the Housing Authority of Charlotte 
has had the full cooperation of the officials, agencies, and representatives of 
the City of Charlotte; that on the 13th day of March, 1939, a cooperation 
agreement was entered into by and between the City of Charlotte and the 
Housing Authority of the City of Charlotte. 

9. That with the approval of the United States Housing Authority the 
applicant has selected two sites for the construction of houses for families of 
low income, one site for white persons to provide houses for approximately 
two hundred fifty-four families, and one site for Negroes to provide houses 
for approximately four hundred fifty-two families. 

10. That the United States Housing Authority ear-marked the sum of 
Two Million Fourteen Thousand Dollars ($2,014,000) for the two said projects 
for Charlotte, this being 90 per cent of the approximate cost of the same, the 
remaining 10 per cent, or Two Hundred Twenty-five Thousand Dollars 
($225,000) to be provided by the applicant, making a total of Two Million 
Two Hundred Thirty-nine Thousand Dollars ($2,239,000) for the construction 
of said proposed Housing Projects. 

Findings of Law 

1. The Housing Authority of the City of Charlotte, North Carolina, is a 
municipal corporation duly chartered and organized under the North Carolina 
Housing Authorities Act of 1935, being Chapter 456 of the Public Laws of North 
Carolina of 1935. 

2. That the opinion of the Supreme Court of North Carolina in the case of 
Wells vs. Housing Authority, 213 N. C, page 744, cited in the application 
herein, holds that the said North Carolina Housing Authorities Act is valid 
and constitutional, 



106 !NT. C. Utilities Commission 

3. That the Supreme Court opinion also sets forth some of the reasons and 
purposes of Housing Authorities and recites certain of the powers of Housing 
Authorities in North Carolina, including the power of eminent domain. 

4. That the said North Carolina Housing Authorities Act found and declares 
the need for improving housing conditions and facilities for persons of low 
income (Section 6243(38) of the North Carolina Code of 1935 (Michie's)). 

5. The law provides for public subsidy and financial assistance for Housing 
Projects for persons of low income. 

6. That although a Housing Authority in North Carolina is given broad 
powers to meet the housing needs of persons of low income, including the right 
and power of eminent domain, the right of eminent domain is not to be exer- 
cised unless and until a certificate for public convenience and necessity for 
such project has been issued by the Utilities Commission of North Carolina 
(Section 6243(40) and Section 6243(41) of the North Carolina Code of 1935 
(Michie's)). 

Conclusions 

1. Upon and after considering the application filed herein, the exhibits, oral 
testimony, and the law, and upon investigating and examining the Housing 
Project and projects of the Housing Authority of the City of Charlotte, North 
Carolina, it is decided and determined that a certificate of public convenience 
and necessity should issue for such project and projects, and the Housing 
Authority of the City of Charlotte, North Carolina, should be authorized to 
exercise the right and power of eminent domain. 

Now, Therefore, it is Ordered and Certified: 

1. That the Utilities Commission of North Carolina hereby approves the 
Housing Project and projects of the Housing Authority of the City of Char- 
lotte, North Carolina, 

2. That the Housing Authority of the City of Charlotte, North Carolina, is 
entitled to a Certificate of Public Convenience and Necessity for its Housing 
Project and projects, and that there is hereby issued such a certificate to said 
Authority for such Project and projects. 

3. That said Authority is hereby authorized to exercise the right and power 
of eminent domain in connection with said Project and Projects. 

4. That said Authority is hereby authorized to proceed and continue with 
its said project and projects and do all things necessary in connection 
therewith. 

Utilities Commission of North Carolina, 
By Stanley Winborne, 

Utilities Commissioner of North Carolina. 
Stanley Winborne, 

Utilities Commissioner of North Carolina. 
Attest: 

R. O. Self, Chief Clerk 

of the North Carolina Utilities Commission and the 
North Carolina Utilities Commissioner. 
(SEAL) 
Docket No. 1633. 



Decisions and Adjustments of Complaints 107 

APPLICATION OF THE HOUSING AUTHORITY OF THE CITY OF HIGH 
POINT, NORTH CAROLINA, TO THE UTILITIES COMMISSION OF THE 
STATE OF NORTH CAROLINA FOR A CERTIFICATE OF PUBLIC CON- 
VENIENCE AND NECESSITY AND FOR AUTHORITY TO EXERCISE 
THE RIGHT OF EMINENT DOMAIN. 

Order and Certificate 
This Matter came on for hearing before the Utilities Commission of North 
Carolina on this 1st day of August, 1940, and being heard on the application 
of the Housing Authority of the City of High Point, North Carolina, for 
approval of the High Point, North Carolina, Housing Project, including proj- 
ects numbered NC 6-1, 6-2, and for the issuing and granting of a Certificate 
of Public Convenience and Necessity for said Project and projects and for 
the authority to exercise the right of eminent domain when required by said 
Authority in the acquirement of property to be used in the development of the 
Housing Project or projects in said city; and after hearing and considering 
the entire matter and considering the application, together with the record 
and several exhibits filed and presented therewith, and after hearing the oral 
testimony taken at the hearing, and after investigating and examining 
said matter and records and facts, and after giving due consideration to the 
law, the Commission finds, concludes, determines and orders as follows: 

Findings of Facts 

1. That prior to the creation and organization of the Housing Authority of 
the City of High Point, North Carolina, the governing body of said City, 
being interested in providing better housing conditions in said City and in 
determining the extent of slum conditions existing in said City, made a study 
of local housing conditions, with special consideration to housing conditions 
prevailing among families of low income. 

2. That on the 9th day of December, 1939, more than twenty-five residents 
of the City of High Point filed a petition with the Clerk of the City of High 
Point, setting forth that there was a need for a housing authority to function 
in the City of High Point and the area within ten miles from the territorial 
boundaries thereof, all in accordance with Section 6243(4) of the Housing 
Authorities Act of North Carolina of 1935. 

3. That upon the filing of said petition the Clerk of the City of High Point, 
as required by said Section 6243(4) referred to above, gave notice of time, 
place and purpose of a public hearing, at which the Mayor and City Council 
of High Point would determine whether there existed the need for a Hous- 
ing Authority in said City and surrounding area, 

4. That the date set for said hearing was the 20th day of December, 1939, 
at 9:30 o'clock, a.m., at the usual meeting place of the Mayor and City Council 
of High Point, in the City Hall of the City of High Point, located on East 
Commerce Street, and that at said time and place a large number of residents 
and taxpayers of said City and surrounding area assembled, and they and all 
other interested persons were given an opportunity to be heard, and many 
people were heard and much discussion was had on the proposed housing 
program, together with its slum-clearance, low-rent housing, and the need and 
advantages of the establishment of a housing authority in High Point and sur- 
rounding area. 



108 N. C. Utilities Commission 

5. That following said public hearing on the 20th day of December, 1939, 
the Mayor and City Council of the City of High Point, being the governing 
body thereof, unanimously adopted and passed a resolution which duly deter- 
mined, inter alia, as follows: 

"1. Insanitary and unsafe inhabited dwelling accommodations exist in the 
City and the area within ten miles from the territorial boundaries thereof, and 

"2. There is a lack of safe and sanitary dwelling accommodations in the 
City of High Point, North Carolina, available for all the inhabitants thereof." 

6. That in compliance with the law the Mayor of the City of High Point 
appointed the Commissioners of the Housing Authority of the City of High 
Point, whose names appear in Section V of the Application, for the terms of 
office set out therein. 

7. That the Housing Authority of the City of High Point, after being duly 
created and organized, entered upon its duties, first making a careful analysis 
and study of the actual housing conditions in High Point both for white people 
and for Negroes. This survey disclosed a large number of insanitary, unfit 
and unsafe inhabited dwellings in the City of High Point, necessarily occupied 
by families of low income because of a drastic house shortage. 

8. That in connection with its work the Housing Authority of High Point 
has had the full cooperation of the officials, agencies and representatives of 
the City of High Point. 

9. That with the approval of the United States Housing Authority, the 
applicant has selected two sites for the construction of houses for families of 
low income, one for white persons to provide houses for approximately two 
hundred and fifty families and one site for Negroes to provide houses for 
approximately two hundred families. 

10. That the United States Housing Authority earmarked the sum of One 
Million Five Hundred Thousand Dollars ($1,500,000.00) for the two said 
projects in High Point, this being 90 per cent of the approximate cost of the 
same, the remaining 10 per cent to be provided by the applicant. 

Findings of Law 

1. The Housing Authority of the City of High Point, North Carolina, is a 
municipal corporation duly chartered and organized under the North Caro- 
lina Housing Authorities Act of 1935, being Chapter 456 of the Public Laws 
of North Carolina of 1935. 

2. That the opinions of the Supreme Court of North Carolina in the cases of 
Wells v. Housing Authority, 213 NC 744, and Cox v. Kinston, 217 NC 391, 
referred to in the application herein, hold that the said North Carolina Housing 
Authorities Act is valid and constitutional. 

3. That said Supreme Court opinions also set forth some of the reasons 
and purposes of housing authorities and recite certain of the powers of 
housing authorities in North Carolina, including the power of eminent domain. 

4. That the said North Carolina Housing Authorities Act finds and declares 
the need for improving housing conditions and facilities for persons of low 
income (Section 6243(38) of the North Carolina Code of 1935 (Michie's)). 

5. The law provides for public subsidy and financial assistance for housing 
projects for persons of low income. 



Decisions and Adjustments of Complaints 109 

6. That although a housing authority in North Carolina is given broad pow- 
ers to meet the housing needs of persons of low income, including the right 
and power of eminent domain, the right of eminent domain is not to be 
exercised unless and until a certificate for public convenience and necessity 
for such project has been issued by the Utilities Commission of North Caro- 
lina (Section 6243(40) and Section 6243(41) of the North Carolina Code of 
1935 (Michie's)). 

Conclusions 

1. Upon and after considering the application filed herein, the exhibits, oral 
testimony, and the law, and upon investigating and examining the Housing 
Project and projects of the Housing Authority of the City of High Point, North 
Carolina, it is decided and determined that a certificate of public convenience 
and necessity should issue for such Project and projects, and that the Housing 
Authority of the City of High Point, North Carolina, should be authorized to 
exercise the right and power of eminent domain. 

Now, Therefore, it is Ordered and Certified: 

1. That the Utilities Commission of North Carolina hereby approves the 
Housing Project and projects of the Housing Authority of the City of High 
Point, North Carolina. 

2. That the Housing Authority of the City of High Point, North Carolina, is 
entitled to a certificate of public convenience and necessity for its Housing 
Project and projects, and that there is hereby issued such a certificate to said 
Authority for such Project and projects. 

3. That said Authority is hereby authorized to exercise the right and power 
of eminent domain in connection with said Project and projects. 

4. That said Authority is hereby authorized to proceed and continue with 
its said Project and projects and do all things necessary in connection 
therewith. 

Utilities Commission of North Carolina, 
By Stanley Winborne, 

Utilities Commissioner of North Carolina. 
Stanley Winborne, 

Utilities Commissioner of North Carolina. 
Attest : 

R. 0. Self, Chief Clerk 

of the North Carolina Utilities Commission and the 
North Carolina Utilities Commissioner. 
Docket No. 2018. 

APPLICATION OF THE HOUSING AUTHORITY OF THE CITY OF KIN- 
STON, NORTH CAROLINA, TO THE UTILITIES COMMISSION OF THE 
STATE OF NORTH CAROLINA FOR APPROVAL OF THE KINSTON, 
NORTH CAROLINA, HOUSING PROJECT, No. N. C. 4-1, 4-2, AND FOR 
AUTHORITY TO EXERCISE THE RIGHT OF EMINENT DOMAIN AND 
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. 

Order 
This Matter came on for hearing before the Utilities Commission of North 
Carolina, upon the 3rd day of May, 1940, and being heard upon the application 



110 !N\ C. Utilities Commission 

of the Housing Authority of the City of Kinston, North Carolina, for approval 
of the Kinston, North Carolina, Housing Project No. N. C. 4-1, 4-2, and for the 
granting of a Certificate of Public domain when required by said Authority 
in the acquirement of real property to be used in the development of the 
Housing Projects in said City; and after hearing and considering the entire 
matter and using the verified petition and investigating and examining said 
records and facts, and after giving due consideration to the same, the Com- 
mission finds facts as follows: 

1. That prior to the creation ad organization of the Housing Authority in 
the City of Kinston, the governing body of said City was interested in pro- 
viding better housing conditions in said City, and was fully aware of the local 
housing conditions and insanitary and unsafe dwelling accommodations. 

2. That more than twenty-five citizens of the City of Kinston (being in 
excess of the number required under the terms of the Housing Authorities 
Act of 1935) filed their petition in writing with the governing body of said 
City and re-presented therein that there existed in Kinston insanitary and 
unsafe dwelling accommodations and that there was a lack of sanitary and safe 
dwelling accommodations available to all of the inhabitants of the City and 
particularly persons of low income. 

3. That the governing body of said City, after giving public notice as 
required under the aforesaid Housing Authorities Act, duly called and held 
a public meeting, as required by said act, on August 7, 1939, which meeting 
was attended by a large number of citizens of said City and all were given an 
opportunity to be heard. 

4. That the governing body of said City, after the public hearing aforesaid, 
and after the acquirement of information and facts satisfactory to the said 
governing body, did by unanimous affirmative vote, on December 4, 1939, 
adopt a resolution finding the facts set forth in detail in the petition filed in 
this cause, and pursuant to said findings of fact and after investigation by the 
Mayor of said City, as required by the Housing Authorities Act, the said Mayor 
duly appointed the five Commissioners as set forth in said petition. 

5. Thereafter the Commissioners so appointed applied for and received a 
Charter or Certificate of incorporation from the Secretary of State of North 
Carolina, as authorized by said Housing Authorities Act; and thereafter the 
said Housing Authority, duly created and organized, began the work for which 
it was chartered and created and caused to be made a survey and study of 
Housing conditions in Kinston, North Carolina, and from such study and sur- 
vey found that there existed in said City insanitary and unsafe dwelling ac- 
commodations and that there was a lack of sanitary and safe dwelling accom- 
modations available to all of the inhabitants of the said City and particularly 
persons of low income. And upon such findings the said Authority has selected 
a site for the establishment of improved and better housing conditions for 
the white race, said site consisting of approximately three (3) city blocks, 
in the southeastern section of the City of Kinston; and the said Authority also 
has selected a site upon which it is engaged in providing better and more 
sanitary living conditions for the colored race, and said site of approximately 
four (4) city blocks, located in the eastern section of said city. 

6. That upon the finding of the situation as hereinbefore recited and the 
governing body of the City of Kinston being desirous of said conditions 



Decisions and Adjustments of Complaints 111 

being improved and eliminated so far as possible by the development of the 
housing projects hereinbefore referred to, the said governing body cooperated 
with the said Authority in the steps being taken for the development of said 
projects, and has entered into a Cooperation Agreement with said Authority, 
in accordance with the suggestions made by the United States Housing Author- 
ity and in the manner provided by it; and that the United States Housing 
Authority has at all times cooperated with the Housing Authority of the City 
of Kinston and has, from time to time, provided aid and approved the acts and 
things done by said Local Authority and has rendered valuable assistance to 
the Local Authority in the better working out of the plans for the elimination 
of the insanitary and unsafe dwelling conditions, and contributed tOAvard pro- 
viding more suitable and sanitary dwelling accommodations for persons of low 
income in said City. 

7. That the facts found by the Housing Authority of the City of Kinston have 
been found after considerable and extensive study and after obtaining the 
basic information as a result of a general and specific survey of existing 
conditions in said City, and the development and completion of the plans of 
the Housing Authority of the City of Kinston will inure to the benefit of all 
the citizens of said City. 

8. That the Housing Authority of the City of Kinston will enter into a Loan 
Contract with the United States Housing Authority, wherein and whereby, 
among other things, the United States Housing Authority, will, from time 
to time, make advance loans to the Housing Authority of the City of Kinston 
as a capital advance to provide the desired and proposed facilities, and 
thereafter the said United States Housing Authority will purchase or cause 
to be purchased or provide a market for bonds of the Housing Authority of the 
City of Kinston in an amount equal to ninety (90%) per cent of the improve- 
ment costs as well as the purchase of the lands for the sites hereinbefore 
referred to, and that the Housing Authority of the City of Kinston will, when 
required in accordance with said Loan Contract, sell and dispose of bonds equal 
to ten (10%) per cent of said costs, and therefore, the essential capital to 
provide for the costs and development of the sites and projects can and will 
thereby be provided. 

9. The Commission also finds that a Contributions Contract is contemplated 
between the United States Housing Authority and the Housing Authority of 
the City of Kinston, and then the Housing Authority of the City of Kinston 
will be eligible to receive from the United States Housing Authority annual 
contributions equal to three and one-half (3y 2 %) per cent of the cost of said 
projects, as set forth in said contract, and the cost thereof as determined in 
said Loan Contract, and that thereby a fund will be accumulated which will 
enable the Housing Authority of the City of Kinston to pay and retire the 
bonds issued by it for which a market was not provided by the United States 
Housing Authority; and that the United States Housing Authority, under the 
terms of the proposed agreements aforesaid, will permit said fund to accu- 
mulate for the aforesaid purpose over a period of fifteen (15) years and defer 
the collection of the remaining bonds during said period, and that the bonds 
will be amortized over a period of sixty (60) years, with maturities and in the 
manner as determined by the aforesaid contract. 



112 N. C. Utilities Commission 

10. In the case of Wells vs. Housing Authority, 213 N. C. 744, and in the 
case of Cox et al. vs. City of Kinston and the Housing Authority of the City of 
Kinston, which decision has just been rendered by the Supreme Court of 
North Carolina, the Supreme Court held, among other things, that the Housing 
Authorities created under the Housing Authorities Act of 1935, and the amend- 
ments thereto are in fact Municipal Corporations and that property acquired or 
owned by them is free from taxation, and that the development of said Housing 
Projects is in the interest of public health, morals and public welfare, and that 
such development would contribute to a more healthy environment and remove 
insanitary, unsafe and congested living conditions; that in the case of Cox et al. 
vs. City of Kinston and the Housing Authority of the City of Kinston many 
objections were raised by the plaintiffs to the creation and existence of said 
Authority, but that the Supreme Court held it to be regular and affirmed the 
lower Court's decision, rendering a very lengthy decision. For a full state- 
ment of the results declared in both of the above cited cases, the Commission 
hereby refers to the same and has given careful study to said opinions prior 
to the finding of facts set forth herein, and adopts said findings and conclu- 
sions. 

11. That the prosecution and completion of said projects in the City of 
Kinston will not compete with any public service corporation and will not 
have any adverse effect upon any public utility or public servants corporation, 
and on the contrary, the development for use by the citizens of Kinston of 
approximately 296 new, sanitary and improved dwelling units will provide a 
larger market and outlet for the sale of gas and electricity and water in said 
City. 

12. That notice was published in the Kinston Daily Free Press in its issue 
of April 19, 1940, to the effect that unless written protest was filed with the 
Commission by noon, April 29, 1940, the application would be granted. No 
protest was filed. 

It is Now, Therefore, Ordered: 

1. That pursuant to the powers granted to the Commission under Chapter 
456 of the Public Laws of 1935, and amendments thereto, and particularly 
under the provisions of Section 28 of said Act, as well as under all other 
powers vested in said Commission, the Commission, after having made a full 
investigation of all matters involved herein, as authorized by the authority 
above recited, and after finding the facts hereinabove recited, hereby approves 
the Housing Project or Projects now being developed by the Housing Author- 
ity of the City of Kinston, including both of the sites constituting said Project 
or Projects now being developed, as well as the plans for the improvements 
thereon. 

2. That the Housing Authority of the City of Kinston is entitled to and is 
hereby granted a Certificate of Public Convenience and Necessity. 

3. That the Housing Authority of the City of Kinston is hereby authorized 
and empowered to exercise the right and power of eminent domain, from time 
to time, as and when in the judgment of said Housing Authority the right of 
eminent domain and the exercise thereof in the acquirement of sites and 
properties necessary and desirable in the development of these or other proj- 
ects, is or becomes necessary. 



Decisions and Adjustments of Complaints 113 

4. That the Housing Authority of the City of Kinston is authorized and em- 
powered to continue the development of its plans and to provide better hous- 
ing accommodations as contemplated by it and to take such steps and do such 
acts and things as may be necessary, desirable or expedient in the prosecution 
and completion of said purposes, plans and projects, and to take such steps 
and complete said work with reasonable promptness and as early as may be 
expedient in the interest of and for the purpose of eliminating insanitary and 
unsafe dwelling accommodations and for the purpose of providing better facili- 
ties and housing conditions for persons of low income in the City of Kinston, 
North Carolina. 

Utilities Commission, 
By Stanley Winborne, Commissioner. 

(S) Stanley Winborne, 

Utilities Commissioner. 
Attest : 

(S) R. 0. Self, Clerk. 

North Carolina Utilities Commission. 
(SEAL) 

I, R. 0. Self, Chief Clerk of the North Carolina Utilities Commission, do 
hereby certify the foregoing and attached (seven sheets) to be a true copy 
from the records of this office. 

In Witness Whereof, I have hereunto set my hand and affixed the official seal 
of the Commission. 

Done in office at Raleigh, this 3rd day of May in the Year of our Lord 1940. 

(S) R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 1960. 

APPLICATION OF THE HOUSING AUTHORITY OF THE CITY OF NEW 
BERN, NORTH CAROLINA, TO THE UTILITIES COMMISSION OF THE 
STATE OF NORTH CAROLINA FOR APPROVAL OF THE NEW BERN, 
NORTH CAROLINA, HOUSING PROJECT No. N. C. 5-1, 5-2, AND FOR 
AUTHORITY TO EXERCISE THE RIGHT OF EMINENT DOMAIN AND 
FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. 

Order 
This Matter came on for hearing before the Utilities Commission of North 
Carolina, upon the 6th day of April, 1940, and being heard upon the application 
of the Housing Authority of the City of New Bern, North Carolina, for 
approval of the New Bern, North Carolina, Housing Project No. N. C. 5-1, 5-2, 
and for the granting of a Certificate of Public Convenience and Necessity, and 
for the right to exercise eminent domain when required by said Authority in 
the acquirement of real property to be used in the development of the Housing 
Projects in said City; and after hearing and considering the entire matter and 
using the verified petition, and investigating and examining said records and 
facts, and after giving due consideration to the same, the Commission finds 
facts as follows: 



114 "N. C. Utilities Commission 

1. That prior to the creation and organization of the Housing Authority in 
the City of New Bern, the governing hody of said City was interested in pro- 
viding better housing conditions in said City, and was fully aware of the local 
housing conditions and insanitary and unsafe dwelling accommodations. 

2. That more than twenty-five citizens of the City of New Bern (being in 
excess of the number required under the terms of the Housing Authorities Act 
of 1935) filed their petition in writing with the governing body of said City 
and represented therein that there existed in New Bern insanitary and unsafe 
dwelling accommodations and that there was a lack of sanitary and safe 
dwelling accommodations available to all of the inhabitants of the City and 
particularly persons of low income. 

3. That the governing body of said City, after giving public notice as re- 
quired under the aforesaid Housing Authorities Act, duly called and held a 
public meeting, as required by said act, on December 18, 1939, which meeting 
was attended by a large number of citizens of said City and all were given an 
opportunity to be heard. 

4. That the governing body of said City, after the public hearing aforesaid, 
and after the acquirement of information and facts satisfactory to the said 
governing body, did by majority affirmative vote, eight to one, adopt a resolu- 
tion finding the facts set forth in detail in the petition filed in this cause, and 
pursuant to said findings of fact and after investigation by the Mayor of 
said City, as required by the Housing Authorities Act, the said Mayor duly 
appointed the five Commissioners as set forth in said petition. 

5. Thereafter the Commissioners so appointed applied for and received a 
Charter or Certificate of Incorporation from the Secretary of State of North 
Carolina, as authorized by said Housing Authorities Act; and thereafter the 
said Housing Authority, duly created and organized, began the work for which 
it was chartered and created and caused to be made a survey and study of hous- 
ing conditions in New Bern, North Carolina, and from such study and survey 
found that there existed in said City insanitary and unsafe dwelling accommo- 
dations and that there was a lack of sanitary and safe dwelling accommoda- 
tions available to all of the inhabitants of the said City and particularly per- 
sons of low income. And upon such findings the said Authority has selected a 
site for the establishment of improved and better housing conditions for the 
white race, said site consisting of approximately four (4) city blocks, in the 
Southwestern section of the City of New Bern; and the said Authority also 
has selected a site upon which it is engaged in providing better and more 
sanitary living conditions for the colored race, and said site consists of 
approximately twelve (12) city blocks, located in the Northwestern section of 
said city. 

6. That upon the finding of the situation as hereinbefore recited and the 
governing body of the City of New Bern being desirous of said conditions 
being improved and eliminated so far as possible by the development of the 
housing projects hereinbefore referred to, the said governing body co- 
operated with the said Authority in the steps being taken for the development 
of said projects, and intends to enter into a Cooperation Agreement with said 
Authority, in accordance with the suggestions made by the United States 
Housing Authority and in the manner provided by it; and that the United 
States Housing Authority has at all times cooperated with the Housing 



Decisions and Adjustments of Complaints 115 

Authority of the City of New Bern and has, from time to time, provided aid 
and approved the acts and things done by said Local Authority and has 
rendered valuable assistance to the Local Authority in the better working out 
of the plans for the elimination of the insanitary and unsafe dwelling condi- 
tions, and contributed toward providing more suitable and sanitary dwelling 
accommodations for persons of low income in said City. 

7. That the facts found by the Housing Authority of the City of New Bern 
have been found after considerable and extensive study and after obtaining 
the basic information as a result of a general and specific survey of existing 
conditions in said City, and the development and completion of the plans of 
the Housing Authority of the City of New Bern will inure to the benefit of all 
the citizens of said City. 

8. That the Housing Authority of the City of New Bern will enter into a 
Loan Contract with the United States Housing Authority, wherein and 
whereby, among other things, the United States Housing Authority, will, from 
time to time, make advance loans to the Housing Authority of the City of 
New Bern as a capital advance to provide the desired and proposed facilities, 
and thereafter the said United States Housing Authority will purchase or 
cause to be purchased or provide a market for bonds of the Housing Authority 
of the City of New Bern in an amount equal to ninety (90%) per cent of the 
improvement costs as well as the purchase of the lands for the sites herein- 
before referred to, and that the Housing Authority of the City of New Bern 
will, when required in accordance with said Loan Contract, sell and dispose of 
bonds equal to ten (10%) per cent of said costs, and therefore, the essential 
capital to provide for the costs and development of the sites and projects can 
and will thereby be provided. 

9. The Commission also finds that a Contributions Contract is contemplated 
between the United States Housing Authority and the Housing Authority of 
the City of New Bern, and then the Housing Authority of the City of New 
Bern will be eligible to receive from the United States Housing Authority 
annual contributions equal to three and one-half (Sy 2 %) per cent of the cost 
of said projects, as set forth in said contract, and the cost thereof as deter- 
mined in said Loan Contract, and that thereby a fund will be accumulated 
which will enable the Housing Authority of the City of New Bern to pay and 
retire the bonds issued by it for which a market was not provided by the 
United States Housing Authority; and that the United States Housing Author- 
ity, under the terms of the proposed agreements aforesaid, will permit said 
fund to accumulate for the aforesaid purpose over a period of fifteen (15) 
years and defers the collection of the remaining bonds during said period; 
and that the bonds will be amortized over a period of sixty (60) years, with 
maturities and in the manner as determined by the aforesaid contract. 

10. In the case of Wells v. Housing Authority, 213 N. C. 744, the Supreme 
Court held, among other things, that the Housing Authorities created under 
the Housing Authorities Act of 1935, are in fact municipal corporations and 
that property acquired or owned by them is free from taxation, and 
the development of said Housing Projects is in the interest of public 
health, morals and public welfare, and that such development would 
contribute to a more healthful environment, and remove insanitary, un- 



116 !N". C. Utilities Commission 

safe and congested living conditions; and for a more full statement of 
facts set forth herein, and adopts said findings and conclusions. 

11. That the prosecution and completion of said projects in the City of 
New Bern will not compete with any public service corporation and will not 
have any adverse effect upon any public utility or public service corporation, 
and on the contrary, the development for use by the citizens of New Bern 
of approximately new, sanitary and improved dwelling units will provide 
a larger market and outlet for the sale of gas and electricity in said City. 

12. That notice was published in the New Bern Tribune in its issue of March 
29, 1940, to the effect that unless written protest were filed with this Commis- 
sion by noon, April 6, 1940, the application would be granted. No protest was 
filed. 

It is Now, Therefore, Ordered: 

1. That pursuant to the powers granted to the Commission under Chapter 
456 of the Public Laws of 1935, and amendments thereto, and particularly 
under the provisions of Section 28 of said Act, as well as under all other 
powers vested in said Commission, the Commission, after having made a full 
investigation of all matters involved herein, as authorized by the authority 
above recited, and after finding the facts hereinabove recited, hereby approves 
the Housing Project or Projects now being developed by the Housing Author- 
ity of the City of New Bern, including both of the sites constituting said 
Project or Projects now being developed, as well as the plans for the improve- 
ments thereon. 

2. That the Housing Authority of the City of New Bern is entitled to and is 
hereby granted a Certificate of Public Convenience and Necessity. 

3. That the Housing Authority of the City of New Bern is hereby authorized 
and empowered to exercise the right and power of eminent domain, from time 
to time, as and when in the judgment of said Housing Authority the right of 
eminent domain and the exercise thereof in the acquirement of sites and 
properties necessary and desirable in the development of these or other proj- 
ects, is or becomes necessary. 

4. That the Housing Authority of the City of New Bern is authorized and 
empowered to continue the development of its plans and to provide better 
housing accommodations as contemplated by it and to take such steps and do 
such acts and things as may be necessary, desirable or expedient in the prose- 
cution and completion of said purposes, plans and projects, and to take such 
steps and complete said work with reasonable promptness and as early as may 
be expedient in the interest of and for the purpose of eliminating insanitary 
and unsafe dwelling accommodations and for the purpose of providing better 
facilities and housing conditions for persons of low income in the City of 
New Bern, North Carolina. 

Utilities Commission, 

By Stanley Winborne, 

Commissioner. 
April 8, 1940. 
Attest: 

R. 0. Self, Clerk. 
Docket No. 1946. 



Decisions and Adjustments of Complaints 117 

APPLICATION OF THE HOUSING AUTHORITY OF THE CITY OF RA- 
LEIGH, NORTH CAROLINA, TO THE UTILITIES COMMISSION OF 
THE STATE OF NORTH CAROLINA FOR A CERTIFICATE OF PUBLIC 
CONVENIENCE AND NECESSITY AND FOR AUTHORITY TO EXER- 
CISE THE RIGHT OF EMINENT DOMAIN. 

Order and Certificate 
This Matter came on for hearing before the Utilities Commission of North 
Carolina on this 24th day of January, 1939, and being heard on the application 
of the Housing Authority of the City of Raleigh, North Carolina, for approval 
of the Raleigh, North Carolina, Housing Project, including projects numbered 
NC 2-1, 2-2, and for the issuing and granting of a Certificate of Public Con- 
venience and Necessity for said Project and projects and for the authority to 
exercise the right of eminent domain when required by said Authority in the 
acquirement of property to be used in the development of the Housing Project 
or projects in said city; and after hearing and considering the entire matter 
and considering the application, together with the record and several exhibits 
filed and presented therewith, and after hearing the oral testimony taken at 
the hearing, and after investigating and examining said matter and records 
and facts, and after giving due consideration to the same, as well as to the 
oral testimony offered, and after giving due consideration to the law, the 
Commission finds, concludes, determines and orders as follows: 

Findings of Facts 

1. That prior to the creation and organization of the Housing Authority of 
the City of Raleigh, the governing body of said City, being interested in 
providing better housing conditions in said City and in determining the 
extent of slum conditions existing in said City, made a study of local housing 
conditions, with special consideration to housing conditions prevailing among 
families of low income. 

2. That on the 8th day of June, 1938, more than twenty-five residents of the 
City of Raleigh filed a petition with the Clerk of the City of Raleigh, setting 
forth that there was a need for a Housing Authority to function in the City of 
Raleigh and the surrounding area, all according to Section 6243(4) of the 
Housing Authorities Act of North Carolina of 1935. 

3. That upon the filing of said petition the Clerk of the City of Raleigh, as 
required by said Section 6243(4) referred to above, gave notice of time, place 
and purpose of a public hearing, at which the governing body of the City of 
Raleigh, namely, the Commissioners of said City, would determine whether 
there existed the need for a Housing Authority in said city and surrounding 
area. 

4. That the date fixed for said hearing was the 29th day of June, 1938, 
and hour 10:30 o'clock a.m., and the place the office of the Mayor of the City 
of Raleigh; that at said time and place a large number of residents and tax- 
payers of said city and surrounding area, assembled and they and all other 
interested persons were given an opportunity to be heard; that at said meeting 
and hearing many persons were heard, and there was full, free and extensive 
discussion of a proposed housing program with a three-fold purpose of slum- 
clearance, low-rent-housing, and proper long time planning for the City of 
Raleigh and the surrounding area. 



118 K". C. Utilities Commission 

5. That following said public hearing, on the 29th day of June, 1938, the 
Commissioners of the City of Raleigh, being the governing body thereof, 
unanimously adopted and passed a resolution which duly determined, inter 
alia, as follows : 

"1. Insanitary and unsafe inhabited dwelling accommodations exist in the 
City of Raleigh, North Carolina; and 

"2. There is a lack of safe and sanitary dwelling accommodations in the 
City of Raleigh, North Carolina, available for all the inhabitants thereof." 

6. That in compliance with the law the Mayor of the City of Raleigh ap- 
pointed the Commissioners of the Housing Authority of the City of Raleigh, 
whose names appear in Section VII of the Application for the terms of office set 
out therein. 

7. That the Housing Authority of Raleigh, after being duly created and 
organized, entered upon its duties, first making a careful survey, analysis and 
study of the housing conditions in Raleigh both for white people and for 
Negroes. This survey disclosed a large number of insanitary, unfit and unsafe 
inhabited dwellings in the City of Raleigh, necessarily occupied by families 
of low income because of a drastic house shortage. 

8. That in connection with its work the Housing Authority of Raleigh has 
had the full cooperation of the officials, agencies and representatives of the 
City of Raleigh. That on the 14th day of September, 1938, a cooperation agree- 
ment was entered into by and between the City of Raleigh and the Housing 
Authority of the City of Raleigh. 

9. That with the approval of the United States Housing Authority, the 
applicant has selected two sites for the construction of houses for families of 
low income, one site for white persons to provide houses for approximately two 
hundred families and one site for Negroes to provide houses for approxi- 
mately two hundred families. 

10. That the United States Housing Authority ear-marked the sum of One 
Million Eight Hundred Thousand Dollars ($1,800,000.00) for the two said 
projects for Raleigh, this being 90 per cent of the approximate cost of the 
same, the remaining 10 per cent, or $200,000.00 to be provided by the applicant, 
making a total of Two Million Dollars ($2,000,000.00) for the construction 
of said proposed housing projects. 

Findings of Law 

1. The Housing Authority of the City of Raleigh, North Carolina, is a mu- 
nicipal corporation duly chartered and organized under the North Carolina 
Housing Authorities Act of 1935, being chapter 456 of the Public Laws of 
North Carolina of 1935. 

2. That the opinion of the Supreme Court of North Carolina in the case of 
Wells vs. Housing Authority, 213 N. C, page 744, cited in the application 
herein, holds that the said North Carolina Housing Authorities Act is valid 
and constitutional. 

3. That said Supreme Court opinion also sets forth some of the reasons 
and purposes of housing authorities and recites certain of the powers of 
housing authorities in North Carolina, including the power of eminent domain. 



Decisions and Adjustments of Complaints 119 

4. That the said North Carolina Housing Authorities Act finds and declares 
the need for improving housing conditions and facilities for persons of low 
income (Section 6243(38) of the North Carolina Code of 1935 (Michie's)). 

5. The law provides for public subsidy and financial assistance for housing 
projects for persons of low income. 

6. That although a housing authority in North Carolina is given broad 
powers to meet the housing needs of persons of low income, including the 
right and power of eminent domain, the right of eminent domain is not to 
be exercised unless and until a certificate for public convenience and neces- 
sity for such project has been issued by the Utilities Commission of North 
Carolina (Section 6243(40) and Section 6243(41) of the North Carolina Code 
of 1935 (Michie's)). 

Conclusions 

1. Upon and after considering the application filed herein, the exhibits, oral 
testimony, and the law, and upon investigating and examining the Housing 
Project and projects of the Housing Authority of the City of Raleigh, North 
Carolina, it is decided and determined that a certificate of public convenience 
and necessity should issue for such Project and projects, and that the Housing 
Authority of the City of Raleigh, North Carolina, should be authorized to 
exercise the right and power of eminent domain. 

Now, Therefore, it is Ordered and Certified: 

1. That the Utilities Commission of North Carolina hereby approves the 
Housing Project and projects of the Housing Authority of the City of Raleigh, 
North Carolina. 

2. That the Housing Authority of the City of Raleigh, N. C, is entitled to a 
certificate of public convenience and necessity for its Housing Project and 
projects, and that there is hereby issued such a certificate to said Authority 
for such Project and projects. 

3. That said Authority is hereby authorized to exercise the right and power 
of eminent domain in connection with said Project and projects. 

4. That said Authority is hereby authorized to proceed and continue with its 
said Project and projects and do all things necessary in connection therewith. 

Utilities Commission of North Carolina, 
By Stanley Winborne, 
Utilities Commissioner of North Carolina. 
Attest: 

R. O. Self, Chief Clerk 

of the North Carolina Utilities Commission 
and the North Carolina Utilities Commissioner. 

Docket No. 1520. 



120 N". C. Utilities Commission 

APPLICATION OF THE HOUSING AUTHORITY OF THE CITY OF WIL- 
MINGTON, NORTH CAROLINA, TO THE UTILITIES COMMISSION OF 
THE STATE OF NORTH CAROLINA FOR APPROVAL OF THE WIL- 
MINGTON, NORTH CAROLINA, HOUSING PROJECT, No. N. C. 1-1, 1-2, 
AND FOR AUTHORITY TO EXERCISE THE RIGHT OF EMINENT 
DOMAIN. 

Order 
This Matter came on for hearing before the Utilities Commission of North 
Carolina, upon this 15th day of December, 1938, and being heard upon the 
application of the Housing Authority of the City of Wilmington, North Caro- 
lina, for approval of the Wilmington, North Carolina, Housing Project No. 
NC 1-1, 1-2, and for the granting of a Certificate of Public Convenience and 
Necessity, and for the right to exercise eminent domain when required by said 
Authority in the acquirement of real property to be used in the development 
of the Housing Projects in said City; and after hearing and considering the 
entire matter and using the verified petition, together with the records and 
several exhibits attached thereto, and hearing the oral testimony taken at the 
hearing, and investigating and examining said records and facts, and after 
giving due consideration to the same, as well as the testimony offered, the 
Commission finds facts as follows: 

1. That prior to the creation and organization of the Housing Authority 
in the City of Wilmington the governing body of said City being interested in 
providing better housing conditions in said City and in determining the 
extent of slum conditions existing in said City, appointed a Citizens' Commit- 
tee for the purpose of making a survey of said City and a study of local 
housing conditions, insanitary and unsafe dwelling accommodations. 

2. Thereafter and prior to the coming in of the report of said Committee, 
more than thirty citizens of the City of Wilmington (being in excess of the 
number required under the terms of the Housing Authorities Act of 1935) 
filed their petition in writing with the governing body of said City and repre- 
sented therein that there existed in Wilmington insanitary and unsafe dwell- 
ing accommodations and that there was a lack of sanitary and safe dwelling 
accommodations available to all of the inhabitants of the City and particularly 
persons of low income. 

3. That the governing body of said City, after giving public notice as required 
under the aforesaid Housing Authorities Act, duly called and held a public 
meeting, as required by said act, on April 1, 1938, which meeting was attended 
by a large number of citizens of said City and at which meeting the Citizens' 
Committee filed its report, and found and reported therein that there were 
insanitary and unsafe dwelling accommodations existing in Wilmington, 
resulting in overcrowding and congestion, and that there was a lack of sanitary 
and safe dwelling accommodations available to all of the inhabitants of the 
City, and recommended that appropriate steps be taken to create a Housing 
Authority in said City. 

4. That the governing body of said City, after giving due consideration to 
said report, and after the public hearing aforesaid, and after the acquirement 
of information and facts satisfactory to said governing body, did by unani- 
mous affirmative vote adopt a resolution finding the facts set forth in detail 
in Paragraph 5 of the petition filed in this cause, and pursuant to said find- 



Decisions and Adjustments of Complaints 121 

ings of fact and after investigation by the Mayor of said City, as required by 
the Housing Authorities Act, the said Mayor duly appointed the five Com- 
missioners set forth in said petition in Paragraph 6 thereof. 

5. Thereafter the Commissioners so appointed applied for and received a 
charter of certificate of incorporation from the Secretary of State of North 
Carolina, as authorized by said Housing Authorities Act; and thereafter the 
said Housing Authority, duly created and organized, began the work for which 
it was chartered and created and caused to be made a survey and study of 
housing conditions in Wilmington, North Carolina, and from such study and 
survey found that there existed in said city insanitary and unsafe dwelling 
accommodations, and that there was a lack of sanitary and safe dwelling 
accommodations available to all of the inhabitants of the said City and par- 
ticularly persons of low income. And upon such findings the said Authority 
has selected a site for the establishment of improved and better housing 
conditions for the white race, and said site consisting of approximately four 
city blocks, in the Southern section of the City of Wilmington, and the loca- 
tion thereof being more particularly defined and described upon the map or 
blueprint thereof attached to the petition and which has been examined by 
the Commission; and the said Authority also has selected a site upon which 
it is engaged in providing better and more sanitary living conditions for the 
colored race, and said site consists of approximately four city blocks, located 
in the Northern section of said City, and more particularly shown upon the 
map or blueprint thereof attached to the petition and which has been examined 
by the Commission. 

6. That upon the finding of the situation as hereinbefore recited and the 
governing body of the City of Wilmington being desirous of said conditions 
being improved and eliminated so far as possible by the development of the 
housing projects hereinbefore referred to, the said governing body cooperated 
with the said Authority in the steps being taken for the development of said 
projects, and has also entered into a Cooperation Agreement with said Author- 
ity, in accordance with the suggestions made by the United States Housing 
Authority and in the manner provided by it; and that the United States Hous- 
ing Authority has at all times cooperated with the Housing Authority of the 
City of Wilmington and has, from time to time, provided aid and approved 
the acts and things done by said Local Authority and has rendered valuable 
assistance to the Local Authority in the better working out of the plans for 
the elimination of the insanitary and unsafe dwelling conditions, and con- 
tributed toward providing more suitable and sanitary dwelling accommoda- 
tions for persons of low income in said City. 

7. That the facts found by the Housing Authority of the City of Wilming- 
ton have been found after considerable and extensive study and after obtain- 
ing the basic information as a result of a general and specific survey of exist- 
ing conditions in said City, and the development and completion of the plans 
of the Housing Authority of the City of Wilmington will inure to the benefit 
of all of the citizens of said City. 

8. That the Housing Authority of the City of Wilmington has entered into 
a Loan Contract with the United States Housing Authority, wherein and 
whereby, among other things, the United States Housing Authority will, from 
time to time, make advance loans to the Housing Authority of the City of 



122 ~N. C. Utilities Commission 

Wilmington as a capital advance to provide the desired and proposed facilities, 
and thereafter the said United States Housing Authority will purchase or 
cause to be purchased or provide a market for bonds of the Housing Authority 
of the City of Wilmington in an amount equal to ninety (90%) per cent of 
the improvement costs as well as the purchase of the lands for the sites herein- 
before referred to, and that the Housing Authority of the City of Wilmington 
will, when required in accordance with said Loan Contract, which is attached 
to the petition and which has been examined by the Commission, sell and 
dispose of bonds equal to ten (10%) per cent of said costs, and, therefore, the 
essential capital to provide for the costs and development of the sites and 
projects can and will thereby be provided. 

9. The Commission also finds from an examination of the Contributions Con- 
tract entered into between the United States Housing Authority and the Hous- 
ing Authority of the City of Wilmington that the Housing Authority of the 
City of Wilmington is eligible to receive from the United States Housing 
Authority annual contributions equal to three and one-half (3y 2 ) per cent of 
the cost of said projects, as set forth in said contract, and the cost thereof as 
determined in said Loan Contract, and that thereby a fund will be accumulated 
which will enable the Housing Authority of the City of Wilmington to pay 
and return the bonds issued by it for which a market was not provided 
by the United States Housing Authority; and that the United States Housing 
Authority, under the terms of the agreements aforesaid, permits said fund to 
accumulate for the aforesaid purpose over a period of fifteen (15) years and 
defers the collection of the remaining bonds during said period ; and that the 
bonds will be amortized over a period of sixty (60) years, with maturities and 
in the matter as determined by the aforesaid contract. 

10. That the need for the completion of the sites, projects and plans herein 
referred to and more particularly shown by the several exhibits before the 
Commission and hereinbefore referred to, is effectively shown and illustrated 
by a comparison and study of the existing conditions, including the photo- 
graphs submitted to the Commission, with those to be provided by said develop- 
ment. 

11. That on the 24th of May, 1938, Harold W. Wells, a resident and tax- 
payer of Wilmington, North Carolina, instituted a suit against the City of 
Wilmington and the Housing Authority of the City of Wilmington and, among 
other things, alleged that the development of the Housing Projects in said 
City constituted an unlawful invasion of the rights of property owners and 
taxpayers in said City, and that the then existing Housing Authority was in 
fact only a private corporation engaged in a business enterprise, and the 
plaintiff in said action sought to restrain the doing of any other and further 
acts or things on the part of said Local Authority in developing said projects,, 
and sought to restrain the City of Wilmington from aiding the said Local 
Authority and contributing to its support; and upon the filing of answer on 
the part of the defendants a hearing upon the merits in said cause was had 
before N. A. Sinclair, Judge, and upon the conclusion of the hearing before 
him the action of the plaintiff was dismissed and the relief sought was denied; 
and this Commission refers to the several findings of fact in said decree, and 
for the purpose of this order incorporates herein the facts so found and makes 
the same a part hereof. Thereafter the plaintiff in said cause appealed to the 



Decisions and Adjustments of Complaints 123 

Supreme Court of North Carolina, and the Court, in the case of Wells v. Hous- 
ing Authority, 213 N. C. 744, approved all of the findings of fact by the Supe- 
rior Court Judge and the conclusions of law as found by said Judge; and in 
the opinion of the Supreme Court, among other things, it was held that the 
Housing Authority of the City of Wilmington was in fact a municipal corpora- 
tion and that property acquired or owned by it was free from taxation, and 
that the development of said Housing Projects was in the interest of public 
health, morals, and public welfare, and that such development would con- 
tribute to a more healthful environment, and remove insanitary, unsafe and 
congested living conditions and that the projects were necessary and desirable 
in the interest of more wholesome conditions in the City of Wilmington; and 
for a more full statement of the results declared in said opinion the Commis- 
sion hereby refers to the same and has given careful study to said opinion 
prior to the finding of the facts set forth herein, and adopts said findings 
and conclusions. 

12. That the prosecution and completion of said projects in the City of 
Wilmington will not compete with any public service corporation and will not 
have any adverse effect upon any public utility or public service corporation, 
and on the contrary, the development for use by the citizens of Wilmington of 
approximately two hundred fifty-two (252) new, sanitary and improved dwell- 
ing units will provide a larger market and outlet for the sale of gas and 
electricity in said city. 

It is Now, Therefore, Ordered: 

1. That pursuant to the powers granted to the Commission under Chapter 
456 of the Public Laws of 1935, and particularly under the provisions of Sec- 
tion 28 of said Act, as well as under all other powers vested in said Commis- 
sion, the Commission, after having made a full investigation of all matters 
involved herein, as authorized by the authority above recited, and after finding 
the facts hereinbefore recited, hereby approves the Housing Project or Proj- 
ects now being developed by the Housing Authority of the City of Wilmington, 
including both of the sites constituting said Project or Projects now being de- 
veloped, as well as the plans for the improvements thereon. 

2. That the Housing Authority of the City of Wilmington is entitled to and 
is hereby granted a certificate of Public Convenience and Necessity. 

3. That the Housing Authority of the City of Wilmington is hereby author- 
ized and empowered to exercise the right and power of eminent domain, from 
time to time, as and when in the judgment of said Housing Authority the 
right of eminent domain and the exercise thereof in the acquirement of sites 
and properties necessary and desirable in the development of said Projects, is 
necessary. 

4. That the Housing Authority of the City of Wilmington is authorized and 
empowered to continue the development of its plans and to provide better 
housing accommodations as contemplated by it and to take such steps and do 
such acts and things as may be necessary, desirable or expedient in the prose- 
cution and completion of said purposes, plans, and projects, and to take such 
steps and complete said work with reasonable promptness and as early as 
may be expedient in the interest of and for the purpose of eliminating insani- 
tary and unsafe dwelling accommodations and for the purpose of providing 



124 1ST. C. Utilities Commission 

better facilities and housing conditions for persons of low income in the City 
of Wilmington, North Carolina. 

()S) Stanley Winborne, 
Utilities Commissioner. 
Attest: 

(S) R. O. Self, Clerk. 
December 15, 1938. 
Docket No. 1482. 

Motor Vehicle Lines 

Franchise Certificates Granted Under Authority of Chapter 136, Public Laws 
of North Carolina, 1927, Outstanding on November 1, 1940. 

Appalachian Trail Bus Line, Hayesville, N. C, Certificate No. 467. 

Passenger: Between Franklin and Murphy via Hayesville U. S. Route No. 
64; Murphy to N. C.-Tennessee State Line down the Hiawassee River via 
Unaka. 

Arden Stage Company, Mrs. A. N. Graham d /b/a, 6 Westchester Drive, Ashe- 
ville, N. C. Certificate No. 457. 
Passenger: Between Asheville and Airport — Pack Square via Biltmore 
Avenue to Brook, to intersection of Sweeten Creek Road, to Arden to Cane 
Creek Road to Fletcher; thence to Cane Creek Road to Airport. 

Atalantic Greyhound Corporation, Charleston, West Virginia, A. M. Hill, 
President, Charleston, West Virginia, J. L. Gilmer, Vice President, Win- 
ston-Salem, North Carolina. Certificate No. 429. 
Passenger: Routes covered by Franchise Certificate No. 429, which is 
hereby renewed as of December 16, 1939. Since the issuance on December 16, 
1936, of Certificate No. 429, of which this is a renewal under Chapter 136, 
Public Laws of 1927, and amendments thereto, the State Highway Commis- 
sion has changed practically all the Highway Route Numbers and this cer- 
tificate in being renewed has been made to conform to the new numbers in 
accordance with the Highway Map dated 1939, but in changing the numbers 
the cities en route have been followed so as to properly locate the highways 
operated by the owner of this certificate and its predecessors. 

(1) From Virginia-North Carolina State Line (near Price, N. C.) via 
Stoneville, Madison, Walnut Cove, and Walkertown over Highways Nos. 220 
and 311 to Winston-Salem; thence to the North Carolina-South Carolina 
State Line (near Grover, N.C.) via Clemmons, Mocksville, Statesville, Moores- 
ville, Huntersville, Charlotte, Gastonia and Kings Mountain over Highways 
Nos. 158, 64, 21, 29 and 74 and over Highways Nos. 7 and 161 with the under- 
standing that the Queen City Coach Company, Inc., has equal rights to oper- 
ate between Charlotte and Kings Mountain via Highways Nos. 29 and 74 and 
over Highway No. 7 via Belmont, McAdenville, Lowell, Ranlo to Gastonia and 
over No. 161 via Bessemer City in accordance with agreement dated August 
24, 1932, copy of which appears on the back of Certificate No. 240 outstand- 
ing in the name of Queen City Coach Company, Inc. 

(2) From Charlotte to North Carolina-South Carolina State Line via 
Pineville over Highway No. 21 and from Pineville to North Carolina-South 
Carolina State Line via U. S. Highway No. 521. 



Decisions and Adjustments of Complaints 125 

(3) From Tennessee-Virginia State Line (near Zionville) to Winston- 
Salem via Boone, North Wilkesboro, Brooks Cross Roads, and Yadkinville 
over Highway No. 421. 

(4) From Shelby to Winston-Salem via Fallston, Belwood, Toluca, Mor- 
ganton, Lenoir, Wilkesboro, Ronda, Elkin, Boonville and East Bend over 
Highways Nos. 18, 268, 21 and 67. 

(5) From Lenoir to Statesville via Taylorsville over Highway No. 90 and 
Taylorsville to Wilkesboro via Moravian Falls over Highway No. 16. 

(6) From Virginia-North Carolina State Line (between Mount Airy, N. C, 
and Hillsville, Va.) to Greensboro via Mount Airy, Pilot Mountain, Rural 
Hall, Winston-Salem, Kernersville and Friendship, over Highways Nos. 52 
and 421; and 703 between Winston^Salem and Kernersville; and 311 be- 
tween Winston-Salem and High Point. 

(7) From Virginia-North Carolina State Line to Twin-Oaks via Highway 
No. 21 (also No. 221). 

(8) From Jefferson to Statesville via Scottville, Sparta, Roaring Gap, 
Elkin, Brooks Cross Roads, and Harmony over Highways Nos. 16, 221 and 21. 

(9) From Jefferson to Boone via Baldwin over Highway No. 221. 

(10) From Winston-Salem to Raleigh via Lexington, Asheboro, Siler City, 
Pittsboro and Cary over Highways Nos. 52 and 64. 

(11) From Greensboro to Virginia-North Carolina State Line (near Pel- 
ham) via Reidsville over Highway No. 29. 

(12) From Winston-Salem to Reidsville via Stokesdale and Wentworth 
over Highway No. 158. 

(13) From Tenn.-North Carolina State Line (near Hot Springs, N. C.) 
to South Carolina-North Carolina State Line (near Tuxedo) via Hot Springs, 
Marshall, Asheville, Skyland, Fletcher, Hendersonville, and Flat Rock over 
Highway No. 25 ; and from Hendersonville to South Carolina-North Carolina 
State Line via Davidson River, Brevard and Cedar Mountain over Highways 
Nos. 64 and 276. 

(14) From Virginia-North Carolina State Line (near Wise, N. C.) to 
South Carolina-North Carolina State Line (near Little River, S. C.) via 
Norlina, Henderson, Franklinton, Raleigh, Clayton, Smithfield, Selma, Prince- 
ton, Goldsboro, Mount Olive, Warsaw, Kenansville, Tin City, Burgaw, Wil- 
mington, Bolivia, Supply and Shallotte, over Highways Nos. U. S. 1, 70, 117 
and 17; also Henderson to Durham via Oxford and Creedmoor over High- 
ways Nos. 15 and 158; from Franklinton to Louisburg over Highway No. 56 
and from Louisburg to Henderson via Epson over Highway No. 39, and an 
unnumbered highway between Warsaw and Wallace via Magnolia and over 
Highway No. 41 between Wallace and Tin City. 

(15) Between Raleigh and Fayetteville via U. S. Highway No. 15 A, Ra- 
leigh, N. C, to Five Points (Cairo); N. C. Highway No. 55, Five Points 
(Cairo) to Angier; N. C. Highway No. 210, Angier to Lillington; and U. S. 
Highway No. 15 A, Lillington to Fayetteville; subject to the restriction here- 
inafter set forth. That in the operation granted in Order in Docket No. 1191 
outlined above in this paragraph, the Atlantic Greyhound Corporation shall 
not have the right to transport passengers originating at Raleigh destined 
to Fayetteville, passengers originating at Fayetteville destined to Raleigh, 
passengers originating at Raleigh destined to points on IT. S. Highway No. 
15 A between Raleigh and Five Points (Cairo) including Five Points (Cairo), 



126 JST. C. Utilities Commission 

and passengers originating at Fayetteville destined to points between Five 
Points (Cairo) and Raleigh on U. S. Highway No. 15 A, nor passengers 
originating at Fayetteville destined to points beyond Raleigh not on the 
Greyhound Lines. 

(16) Raleigh to North Carolina-South Carolina State Line, near McColl, 
S. C, via U. S. No. 15A via Fuquay Springs, Kipling, Lillington, Bun Level, 
Fayetteville, Raeford, Wagram and Laurinburg, without privilege of local 
operations between Raeford and Fayetteville and operation over that part of 
the route between Raleigh and Lillington being restricted to the transporta- 
tion of passengers whose origin or destination is between Lillington and 
Fayetteville, not including either, and points included on the routes above 
given south of Fayetteville. 

Barbour's Motor Express, R. H. Barbour, Fuquay Springs, N. C. Certificate 
No. 386. 
Freight: Raleigh and Fayetteville, 21; and between Cardenas and Fayette- 
ville, 55, 60 and 22, via Angier, Coats, Erwin, Dunn and Godwin. 

Bennett Transportation Company, Arthur Bennett and/or Christine Ben- 
nett d/b/a 310 Yarmouth Street, Weirwood, Norfolk, Va. Certificate 
No. 485. 
Freight: (Transport beer and brewery products including containers) be- 
tween Monroe, N. C, and Winston-Salem, Lenoir, Lumberton, Fayetteville, 
Rockingham, Durham, Greensboro, Salisbury, Gastonia, Wilmington, Char- 
lotte, Rocky Mount and Raleigh. 

Black's Motor Express, D. J. Black, Owner, Wilmington, N. C. Certificate 
No. 373. 
Freight: Wilmington to Sanford via Del way, Clinton, Dunn, Lillington 
and Jonesboro, 60 and 53; Wilmington to New Bern, No. 30. 

Blizard Motor Express, Inc., Mount Airy, N. C. Certificate No. 448. 

Freight: Mount Airy to Greensboro via Winston-Salem and Kernersville 
66 and 60. 

Blue Eagle Bus Line,, C. C. Sidden, Owner, Winston-Salem, N. C. Certificate 
No. 452. 
Passenger: Starting South on Main Street at Fourth Street to Third 
/Street; west on Third Street to Liberty Street; north on Liberty Street to 
Patterson Avenue; north on Patterson to Glenn Avenue; north on Glenn 
Avenue to City Limits; thence from City Limits to Ogburn Station on Route 
U. S. 311, west from Ogburn Station to Oak Summit; Ogburn Avenue to 
Chemical Avenue; thence with Ogburn Avenue to one block beyond Newton 
Street; thence to the right with Capps Street and return on Tise Avenue to 
Efird Street; thence with Efird Street to Glenn Avenue as outlined on map 
of Winston-Salem. 

Booze Truck Lines, Roanoke, Va. Certificate 432. 

Freight: Winston-Salem, N. C. to N. C.-Virginia Line, Highway 77 destina- 
tion Roanoke Va. 



Decisions and Adjustments of Complaints 127 

Brooks Transportation Company, Inc., Richmond, Virginia. Certificate No. 
469. 
Freight: From Virginia-North Carolina Line via Route 70 to Reidsville, via 
Route 158 to Wentworth and via Route 48 to Winston-Salem. (This line 
leased to Goldston Motor Express.) 

Buckner Transfer Company, 101 S. Lexington Ave., Asheville, N. C. Certifi- 
cate No. 442. 
Freight: Spruce Pine and Asheville, N. C, daily. 

Calloway, P. E., Washington, N. C. Certificate No. 458. 

Freight: Washington, N. C, and Swanquarter, N. C, over U. S. Highway- 
No. 264 and N. C. 91. 

Capital Coast Express Company, George Ross, President, Raleigh, N. C. 
Certificate No. 450. 
Freight: Raleigh to Kinston, Highway No. 10; Kinston to New Bern via 
No. 10 and via Nos. 12 and 30; Kinston to Goldsboro via Snow Hill, Highway 
Nos. 12 and 102; Wilmington to Goldsboro, Highway No. 40. 

Clinton over Highways No. 24 and 258 to Jacksonville; thence over U. S. 
Highway No. 17 to Pollocksville. Kenansville over Highway No. 11 to 
Kinston; thence over Highway No. 55 to Jasper and also Clinton via High- 
way No. 403 to Faison. Between Raleigh and Mocksville over U. S. Highway 
No. 64; thence over No. 64 to the intersection of State Highway No. 901; 
thence with said Highway No. 901 to the intersection of State Highway No. 
115; thence with Highway No. 115 to the intersection of U. S. Highway 
No. 421; two miles east of Wilkesboro, N. C; thence with U. S. Highway 
No. 421 to North Wilkesboro. The route between Raleigh and Asheboro over 
Highway No. 64 is reserved by the Commission as a bridgeway between the 
East and West and the routes herein granted are not exclusive. Wilkesboro 
to Lenoir over Highway No. 18. 

C. & S. Motor Express Company, E. F. Caudill, Secretary and Treasurer, North 
Wilkesboro, N. C. Certificate No. 291. 
Freight: North Wilkesboro and Winston-Salem via Highway No. 60, via 
Yadkinville and Brooks Cross Roads. 

Carolina Coach Company, H. H. Hearn, General Manager, Raleigh, N. C. 
Certificate No. 147. 
Passenger: Raleigh to Charlotte via Greensboro and Salisbury, 10, 15; 
Raleigh to Fayetteville via Lillington and Dunn, 21, 60, 22; Raleigh to North 
Carolina-Virginia State Line via Rocky Mount, Tarboro, Rich Square, Au- 
lander, Winton, Gatesville, Sunbury, and Corapeake, 90, 12, 305, 30; Green- 
ville to Tarboro via Bethel, 11, 90; Zebulon to Wilson, 91; Durham to 
Chapel Hill, 75; Bethel to Williamston, 90; Raleigh to Virginia-North Caro- 
lina State Line via Creedmoor and Oxford over Highways Nos. 31 and 75; 
Greensboro and Raleigh via Chapel Hill over Route 10 from Greensboro to 
Burlington; 10-A from Burlington to Graham, then over Route 54 from 
Graham to Nelson and Route 10 from Nelson to Raleigh. Greenville to 
Bethel, N. C, Highway No. 11; Tarboro to Leggett, N. C. Highway No. 44; 
Leggett to Junction U. S. Highway No. 258 on N. C. Highway No. 95; 
Rich Square to Woodland on U. S. Highway No. 258; Woodland to Conway 



128 N". C. Utilities Commission 

on N. C. Highway No. 45; Conway to Murfreesboro on U. S. Highway No. 158 
and Murfreesboro to Winton on N. C. Highway No. 35; Charlotte and Raleigh 
via Albemarle and Sanford Highways Nos. 27, 74, 75 and 50; Prom U. S. 
Highway No. 27 on N. C. 705 to Hemp and return on same route to U. S. 
Highway 27; on N. C. Highway No. 742 from Red Cross to Oakboro and 
return on same route to Red Cross. 

Highway No. 29 from Salisbury to Charlotte as well as No. 29A paralleling 
No. 29 and a road or street through the town of Kannapolis known as Ridge 
Avenue. Raleigh to Durham via Highway No. 15A and 70A. From Durham 
over N. C. Highway No. 59 to Warrenton; thence via U. S. No. 158 to Con- 
way, via the towns of Louisburg, Ingleside, Littleton (Roanoke Rapids over 
No. 47), Weldon and Jackson. Between Goldsboro and Washington, N. C, 
via Kinston and Greenville over U. S. Highway No. 70, N. C. State Highway 
No. 11, U. S. Highway No. 264 and U. S. Highway No. 17; from Goldsboro 
over Highway No. 70 to the intersection of No. 102; thence over No. 102 
to Snow Hill; thence over 258 to Farmville; thence over unnamed and 
unnumbered County Highway between Farmville and Bruce to Highway 
No. 43; thence over No. 43 to Greenville. (Operation between Snow Hill and 
Farmville being subject to the franchise of the Virginia-Carolina Coach 
Company.) Highway No. 43 between Bruce and the intersection of No. 258 
near Pinetops. The unnumbered highway referred to in preceding paragraph 
has now been designated as No. 121 (subject to complaint and hearing) 
Raleigh to Warrenton via N. C. No. 59 via Louisburg and Ingleside; thence 
Warrenton to Conway via U. S. No. 158 via Macon, Vaughn, Littleton, 
Roanoke Rapids on Highway No. 47, Weldon and Jackson. From Tarboro 
over Highway No. 258 and N. C. Highway No. 43 to Pinetops; from Pinetops 
to Macclesfield over unnumbered County Road; thence from Macclesfield to 
Wilson over Highways Nos. 124 and 42; thence over Highway No. 301 
from Wilson to Dunn; from Macclesfield to Crisp on Highway No. 124 
as an off-route point. Durham over N. C. Highway No. 91 and No. 98 via 
Wake Forest and Bunn to intersection of U. S. Highway 64; thence over 
No. 64 to Rocky Mount. • 

Carolina Scenic Coach Line, McD. Turner, 231 East Main St., Spartanburg, 
S. C. Certificate No. 68. 
Passenger: Hendersonville to Tryon, 191; Elk Park to North Carolina- 
South Carolina State Line near Cliffside, 194, 19, 20, 207, via Newland, 
Woodlawn, Marion and Rutherfordton; Hendersonville to Asheville, 191 
(without privilege of picking up passengers in Hendersonville for Asheville, 
except for the part of Asheville west of the French Broad River, known as 
West Asheville, or on the East side of the French Broad River for Hender- 
sonville), N. C.-S. C. State Line to Shelby over Highway No. 18. Shelby and 
the South Carolina State Line via Patterson Springs and Earl. 

Carolina Stages, Spartanburg, iS. C. Certificate No. 490. 

Passenger: From North Carolina-South Carolina State Line to the City of 
Charlotte, N. C, by way of Shopton, Big Steel Creek Church, Neighborhood 
Store over Mecklenburg County Highway; also from one-half mile north of 
Big Steel Creek Church to Neighborhood Store (or Wilmont) by way of 
Dixie and Brow Hill. 



Decisions and Adjustments of Complaints 129 

Carolina Virginia Lines, J. C. Gilley d /b/a, Leaksville, N. C. Certificate No. 99. 
Passenger: From Leaksville-Spray to North Carolina- Virginia State Line 
destination Danville, Va., via Draper over N. C. Highway No. 700 and U. S. 
Highway No. 29; From Leaksville-Spray to Burlington over N. C. Highway 
No. 54, U. S. Highway No. 168, N. C. Highway No. 703 and N. C. 100, via 
Wentworth, Reidsville, Thompsonville and Ossipee; from Leaksville-Spray 
over Highway No. 54 to the North Carolina-Virginia State Line en route to 
Ridgeway and Martinsville, Virginia. 

Central Motor Freight Lines, Inc., Asheboro, N. C. Certificate No. 478. 

Freight: From Raleigh to Charlotte over Highways Nos. 64, 62, 62A, 52 
and 27 via Asheboro, New London and Albemarle. 

City Coach Company, Charlotte, N. C. Certificate No. 426. 

Passenger: Cramerton north across Route 20 to McAdenville and Lowell, 
including Spencer Mountain Highway to Priscilla Mill and back to Gastonia 
over Highway 29. Union Bus Station in Gastonia to Ridge, N. C, over U. S. 
Highway No. 321. 

City Transit Company, John S. and M. M. Mayberry t /a, Elkin, N. C. Certificate 
No. 476. 
Passenger: From Elkin to State Road via Highway No. 21; thence through 
Jonesville and Arlington to Rena; also over Highway No. 21; thence Elkin 
over Highway No. 268 to intersection of County Road; thence to Austin and 
return via Pleasant Hill on County Road; thence Elkin to Cycle through 
Jonesville. 

City Transit Company, K. Herman Fulk d /b /a, High Point, N. C. Certificate- 
No. 483. 

Passenger: Leave corner of West Washington and Main streets; turn 
right on Main Street; turn left on Main to East Green; turn right on East 
Green to South Hamilton; turn right on South Hamilton to Davis; turn 
right on Davis to South Main; turn left on South Main to City Limits; 
continue on State Highway No. 311 to forks of Highway No. 311 and Flynt 
Hill Road; turn right on Flynt Hill Road to the intersection of Highway 
No. 61 and Flynt Hill Road; turn left on State Highway No. 61 to State 
Highway No. 311; turn right on State Highway No. 311 for approximately 
six-tenths of a mile; stop and return same route. 

The following additional route will be covered during the early morning 
hours and late afternoon hours; turn right on State Highway No. 61 and 
travel one mile to Trinity, N. C. ; return over same route to intersection of 
State Highway No. 61 and Flynt Hill Road. 

Colonial Motor Freight Line, High Point, N. C. Certificate No. 463. 

Freight: High Point to New Bern over U. S. 70; High Point to Raleigh 
over U. S. 70; to Washington over 264; to Williamston over 17; return over 
Route 64 to Raleigh; thence to High Point on 70; High Point to Rockingham 
over U. S. 220; to Wilmington on 74; return by 421 to Julian; thence to 
High Point over 61. 



130 N. C. Utilities Commission 

Conover-Newton Bus Line, Newton, N. C. Certificate No. 473. 

Passenger: From Conover to Newton via U. S. Highway 321 and N. 0. 
Highway 70. 

Danville & Durham Motor Express Line, J. A. Manooch, 726 Temple Avenue, 
Danville, Va. Certificate No. 312. 
Freight: Durham to the North Carolina-Virginia State Line, desination, 
Danville, Va., 55, 48, 14, via Roxboro and Leasburg; Spray to the North 
Carolina-Virginia State Line, 709, 65, 70, via Reidsville; Spray to the North 
Carolina-Virginia State Line via the highway following the Dan River. 
(Authority to pick up in Spray for Reidsville or in Reidsville for Spray 
is not granted.) 

E. T. and W. N. C. Motor Transportation Company, J. E. Vance, Vice Presi- 
dent, Johnson City, Tennessee. Certificate No. 181. 
Freight: Swiss to North Carolina-Tennessee State Line, via Spruce Pine 
and Elk Park, 69; Spruce Pine to N. C.-Tenn. State Line via Bakersville, 19; 
Operation over 692, 197, 104 from their junction with 69 to their junction 
with 19; Elk Park to Banner Elk, 194; Cranberry to Cranberry via Newland, 
Linville, Pineola and Crossnore, 194, 181, 691, 194. 

Engelhard- Washington Bus Company, Mrs. S. M. Gibbs, Owner, Swanquarter, 
N. C. Certificate No. 401. 
Passenger: Washington and Engelhard; Washington over 91 via Bel- 
haven, Scranton, Swanquarter to Engelhard. Highway No. 92 from the 
intersection of Highway No. 91 to Bayview and community. 

From Engelhard over unnumbered highway on the north side of Matta- 
muskeet Lake to Fairfield; thence over Highway No. 94 to Columbia via 
Kilkenny with Gum Neck as off route point. 

Fort Bragg Coach Company, C. F. Harris, Fayetteville, N. C. Certificate No. 
166. 
Passenger: Fayetteville to Fort Bragg, 53. (Leased to the Greensboro- 
Fay ettesville Bus line.) 

Fredriokson Motor Express Corporation, Chas. H. Fredrickson, President, 
Charlotte, N. C. Certificate No. 70. 
Freight: Charlotte to Greensboro U. S. Highways Nos. 29 and 29A; Lex- 
ington to Winston-Salem, U. S. Highway No. 52 ; Charlotte to Statesville, U. S. 
Highway No. 21; Charlotte to Lenoir, N. C. Highway No. 27 and U. S. High- 
way No. 64 and U. S. Highway No. 321; Charlotte to Asheville via Shelby 
and Hendersonville, U. S. Highways Nos. 74, 64 and 25 and via Cliffside over 
N. C. Highway No. 120 and thence to Forest City over U. S. Highway No. 
221; and Gastonia to Belmont via N. C. Highway No. 7; Statesville to Win- 
ston-Salem, U. S. Highways Nos. 64 and 158; Salisbury to Asheville via 
Statesville, U. S. Highways Nos. 64 and 70; Shelby to Lincolnton, N. C. 
Highway No. 150; Cherryville to Bessemer City, N. C. Highway No. 274 
and No. 161 Kings Mountain to Gastonia; Hickory to Asheville, U. S. High- 
ways Nos. 64 and 70: Off route points as follows: Cramerton, Drexel, Lawn- 
dale, Fallston, Derita, Lattimore, Boiling Springs, Flat Rock, N. Flat Rock, 
Ruth, Mt. Pleasant, Catawba and Bryce. 



Decisions and Adjustments of Complaints 131 

Georgia Motor Express, Incorporated, 10 Krog Street, Atlanta, Ga. Certificate 

No. 421. 

Freight: Asheville to the North Carolina-Georgia State Line, destination 

Atlanta, Ga., via Waynesville, Sylva and Franklin 10, and 285 (without 

privilege of local operation on that part of route between Asheville and 

Waynesville). 

Geringer, Hurley, New Bern, N. C. Certificate No. 321. 

Freight: New Bern to Beaufort, 10; Beaufort to intersection of 101 with 
10, near Havelock, 101; Beaufort to Atlantic, County Highway. 

Goldston Motor Express, J. M. and E. H. Goldston, Owners, Spray, N. C. 
Certificate No. 402. 
Freight: Draper and Greensboro via Leaksville-Spray and Reidsville, 770, 
48 and 70 and between Leaksville and Winston-Salem via Stoneville, 770 
and 77. 

Green sboro-Fayetteville Bus Line, Incorporated, Asheboro, N. C. Certificate 
No. 101. 
Passenger: Greensboro to Fayetteville, via Asheboro, Pinehurst, Southern 
Pines, Aberdeen and Raeford, 70, 75, 702, 50, 70, 24; Durham to Rockingham, 
via Sanford and Hamlet, 75, 50, 204, 20; Candor to Rockingham via Norman 
and Ellerbe, 170, 75; Greensboro to Fayetteville via Sanford, 60, 53; High 
Point to Asheboro via Randleman, 77 and 70; Asheboro to Siler City via 
Ramseur, 90. Between Fayetteville and Fort Bragg Reservation over unnum- 
bered County Road via State Teachers' College, Gardner's Chapel, Shaw Sta- 
tion and Overhead Bridge. 

Hampton Roads Transportation Company, J. L. Wright, 912 Water Street, 
Norfolk, Va. Certificate No. 156. 
Freight: Elizabeth City to North Carolina-Virginia State Line via Moyock, 
34; Elizabeth City to North Carolina-Virginia State Line via South Mills, 
34, 341. 

Helms Motor Express, Mrs. Mabel D. Helms, Owner, Albemarle, N. C. Cer- 
tificate No. 273. 
Freight: Raleigh to Charlotte via Sanford, Carthage, Biscoe, Troy, Wade- 
ville, Mount Gilead, Albemarle, Red Cross and Allen over National Highway 
No. 1; Raleigh to intersection of National Highways Nos. 15 and 501; six 
miles south of Sanford; thence with Nos. 15 and 501 to Carthage; thence 
with State No. 27 to Troy; thence with No. 109 to Mount Gilead; thence 
with No. 73 to Albemarle; thence with No. 27 to Charlotte, Durham to 
Aberdeen via Chapel Hill, Pittsboro, Sanford, Cameron, Vass and Southern 
Pines National Highways Nos. 15 and 501 and No. 1; Aberdeen to Pine- 
hurst, National Highways Nos. 15 and 501 and Pinehurst to Southern 
Pines Highway No. 2. Pittsboro to Raleigh via Apex and Cary, Highway No. 
64 and Pinehurst to Biscoe via West End, Eagle Springs, Samarcand and 
Candor over Highway No. 2; Pinehurst to Carthage via Highways Nos. 15 
and 501. 

Heilms Motor Express, Albemarle, N. C. Certificate No. 464. 

Freight: Chapel Hill and Durham Highways Nos. 15 and 501. 



132 ]ST. C. Utilities Commission 

S. A. and H. L. Hennis Freight Line, Mount Airy, N. C. Certificate No. 487. 
Freight: Between Winston-Salem and Burlington, Mebane and Durham 
U. S. Routes Nos. 421 and 70; between Winston-Salem and Reidsville, U. S. 
Routes Nos. 158 and N. C. 65; Between Winston-Salem and Madison U. S. 
Route No. 311; Between Winston-Salem and Mount Airy, U. S. Route No. 52; 
Between Winston-Salem and Boone, U. S. Route No. 421. 

Independent Bus Lines, S. Porter Fulk, trading as, Winston-Salem, N. C. 
Certificate No. 471. 
Passenger: Winston-Salem and Leaksville over County Road. 

Inter-Carolina Motor Bus Company, 32 South Lexington Avenue, Asheville, 
N. C. Certificate No. 406. 
Passenger: Charlotte, N. C, and N. C.-S. C. State Line over N. C. Highway 
15. (This line leased to Smoky Mountain Stages, Incorporated, Asheville, 
N. C.) 

C. A. Lea Transportation Company, Burlington, N. C. Certificate No. 470. 
Passenger: Beginning within the corporate limits of the City of Burling- 
ton at the intersection of Trollinger Street and South Park Avenue via 
South Park Avenue to Hoke Street; thence along Hoke Street to West 
Front Street; thence along Front Street to Spring Street; thence along 
iSpring Street from East Front Street to Davis Street; thence along Davis 
Street to Anthony Street, via Anthony Street to Webb Avenue ; thence along 
Anthony Street to corporate limits of City of Burlington and beyond said 
corporate limits along Anthony Street to Queen Anne Street in Burlington 
Mills Section; thence along Queen Anne Street to Graham Street; thence 
along Graham Street to Beaumont Avenue via Beaumont Avenue to Midway 
Avenue; thence on Midway Avenue to Hopedale Road; thence along Graham 
and Hopedale Road to Corporate limits to Town of Graham and Graham 
Depot; thence along Washington Street to Providence Street; via Providence 
Street and North Main Street to Courthouse in Graham, N. C, and return. 

L. J. N. Trucking Company, Inc., North Wilkesboro, N. C. Certificate No. 482. 
Freight: Between North Wilkesboro and Boone, Route No. 60; thence 
over Route 221 to West Jefferson and Jefferson; thence over Route 16 to 
North Wilkesboro, making daily round trips. 

Lenoir Motor Coach Company, H. D. McLean, d/b/a Lenoir, N. C. Certificate 
No. 475. 
Passenger: Over North Main Street in City of Lenoir; Finley Avenue, 
Scroggs Avenue, Vance Street and Blowing Rock Road U. S. Highway No. 
321 from City limits to Warrior, a distance of about two miles. West Avenue, 
West Harper Avenue, Beall Street, Maple Drive, Virginia Street and State 
Highway No. 90 from City limits to Anderson's Store a distance of about 
three miles. Dog Ridge Road and Harpertown Road, Oak Street. South Main 
Street, East Harper Avenue, Montview Avenue, Norwood Street and State 
Highway No. 90 from City limits to the forks of the Wilkesboro and Tay- 
lorsville Road, a distance of about one and one-half miles. South Main Street, 
South Mulberry Street, Olive Avenue, State Highway No. 321 from City 
limits to intersection of Connelly Springs Road; thence out said road to 
Old Collier's M. E. Church, Harrisburg Road, Miller Hill Road, Underdown 



Decisions and Adjustments of Complaints 133 

Avenue, Mill Street, College Avenue. From Lenoir 1.9 miles to Collettsville 
via Warrior. 

Lincolnton Bus Company, J. R. Lewis, Owner, 32 Lexington Avenue, Asheville, 
N. C. Certificate No. 416. 
Passenger: Gastonia to Lincolnton over State Highway 16. 

Lowther Trucking Company, J. W. Lowther d/b/a 220 Tuckaseigee Road, 
Charlotte, N. C. Certificate No. 480. 
Freight: From Charlotte to Mount Airy over Highways Nos. 21, 268 and 
601 via Statesville, Elkin, Burch and Dobson. (With closed doors and no 
pick-up and delivery in Charlotte for Statesville and points intermediate 
thereto north bound; nor at points intermediate for points north of States- 
ville going north; and no pick-up at points north of Statesville or at States- 
ville for points intermediate, to Statesville and Charlotte going south.) 
Statesville to Elkin over U. S. Highway No. 21; Elkin to Mount Airy over 
N. C. Highway No. 268 and U. S. Highway No. 601; Mount Airy to Mocks- 
ville over U. S. Highway No. 601 and Mocksville to Statesville over U. S. 
Highway No. 64, without pick-up in Statesville for Charlotte. From Mocks- 
ville over State Highway No. 601 to the Junction of Nos. 601 and 801; thence 
over 801 to Cooleemee with the reservation made for other carriers having 
operating rights into and through Mocksville to use Cooleemee as an off 
route point. 

McLeod's Transfer, Ned McLeod, Owner, Broadway, N. C. Certificate No. 385. 
Freight: Sanford to Wilmington, 53, 60 and 40 (Without privilege of 
local operation south of Clinton on 60 and 40). 

Mars Hill-Weaverville Bus Line, M. J. and V. V. Holcombe, Asheville, N. C. 
Certificate No. 433. 
Passenger: Asheville Union Bus Station and Mars Hill over Highways 
Nos. 23 and 36. Beginning at Craggy across French Broad River on Gor- 
mon's Bridge on temporary No. 63 to its intersection with State Highway 
No. 630; along and over said Highway to Elk Mountain Cotton Mill; thence 
County Lateral Road known as Elk Mountain Road to Brown's Store; thence 
Burnsville Hill Road to its intersection with temporary Highway No. 63 at 
Woodfin; thence State Highway No. 63 to its intersection with Lexington 
Avenue within the City of Asheville; thence over such streets as permitted 
by the city to the Union Bus Terminal. 

M. & M. Motor Express, Inc., North Wilkesboro, N. C. Certificate No. 484. 
Freight: North Wilkesboro to Charlotte via Taylorsville, Conover, New- 
ton and Lincolnton over Routes Nos. 16, 321 and 27 provided that the said 
company shall not deliver or accept any freight or express at any point which 
is now served by Fredrickson Motor Express Corporation except shipments 
from North Wilkesboro to Newton and from Newton to North Wilkesboro. 
Wilkesboro and Lenoir via Kings Creek and Boomer, Highway No. 18. 

Miller Motor Express, W. W. Miller, Jr., 314 North Caldwell Street, Charlotte, 
N. C. Certificate No. 304. 
Freight: Charlotte to the North Carolina-South Carolina State Line, 26 
and 261, destination Fort Mill, S. C, Rock Hill, S. C, and Chester, S. C. 



134 1ST. C. Utilities Commission 

Charlotte to Wilmington via Monroe, Wadesboro, Rockingham, Hamlet, 
Laurinburg, Lumberton and Bolton, 20; Laurinburg to Fayetteville via 
Raeford, 24; Fayetteville to Lumberton 22; Lumberton to Bolton, 211. 

Motor Transit Company, R. S. Koonce and M. B. Koonce, 324 West Lane 
Street, Raleigh, N. C. Certificate No. 292. 
Freight: Raleigh to Greensboro, 10; Greensboro to Fayetteville via San- 
ford, 60, 53; Greensboro to Fayetteville via Asheboro, Biscoe, Candor, Eagle 
Springs, Pinehurst, Southern Pines, Aberdeen and Raeford, 70, 75, 702, 
50, 70, 24; Asheboro to Ramseur, 90; Henderson to North Carolina-Va. State 
Line, destination Richmond, Va., U. S. 1. (This route to include via Warren- 
ton, 48) ; Greensboro to Winston-Salem via High Point, Highways 10 and 77. 
Nelson to Chapel Hill over Highway No. 54 and from Durham over High- 
way No. 55 to the intersection of Highway No. 54. (This granted subject 
to conditions set forth in Commission's Order of June 23, 1939.) Between 
Raleigh and Durham via Henderson and Oxford, Highways Nos. 50, 57, 75 
(Now U. S. No. 1, 158 and 15) From Franklinton to Louisburg Highway No. 
56 and Louisburg to Henderson, Highway No. 39. 

Mountain Transportation Company, Inc., Asheville, N. C. Certificate No. 453. 
Passenger: Between Leicester over County Home Road and Emma Road 
to Asheville City limits; thence with West Haywood to destination on 
Patton Avenue, Highway 63. 

Norfolk Southern Bus Corporation, Norfolk, Va. Certificate No. 308. 

Passenger: Elizabeth City to North Carolina- Virginia State Line, destina- 
tion Norfolk, Va., via Camden, Sligo and Moyock, 34; Washington, N. C, 
to the N. C.-Va. State line, destination, Norfolk, Va., via Williamston, Wind- 
sor, Edenton, Elizabeth City and South Mills. 

Passenger and Freight: Knott's Island (which is detached from the main 
land of N. C. by Currituck Sound) from the N. C.-Va. State line to Woodley; 
thence to Knott's Island for both interstate and intrastate passenger and 
freight traffic. 

North Wilkesboro-Statesville! Motor Express, James S. Caudill, Owner, 
North Wilkesboro, North Carolina. Certificate No. 410. 
Freight: Statesville and North Wilkesboro, Highways 90 and 16. 

Oteen Bus Line, Box 262, Oteen, N. C. Certificate No. 411. 

Passenger: Asheville, N. C, and Oteen, N. C. From Pack Square in Ashe- 
ville over College Street into Highway 20 through Beaucatcher Tunnel down 
to the intersection of Highways 10 and 20 at Jack Weaver's restaurant via 
the Municipal Golf Course and Recreation Park to property known as the 
United States Public Health Hospital at Oteen. 

Parkway Bus Company, Inc., Galax, Virginia. Certificate No. 486. 

Passenger : North Carolina-Virginia State Line south of Galax, Virginia, 
to Mount Airy, N. C, over N. C. Highway No. 89. (Leased to E. O. Woodie.) 

Piedmont Coach Company, Wadesboro, N. C. Certificate No. 454. 

Passenger: Wadesboro to New London via Albemarle over Route No. 80. 
From New London to the intersection of No. 62 and 109 over No. 62 and 
from said intersection over Route No. 109 to Winston-Salem via Thomas- 



Decisions and Adjustments of Complaints 135 

ville. Salisbury and Norwood via Albemarle, Highway No. 80; and between 
Albemarle and Badin, County Highways. 

P. &. P. Motor Express, Inc., P. L. Formy Duval, President, Wilmington, N. C. 
Certificate No. 295. 
Freight: Wilmington to Charlotte via Bolton, Lumberton, Laurinburg, 
Hamlet, Rockingham, Wadesboro, and Monroe, 20 ; Boardman to Lumberton 
via Fairmont, 72 and 70; Lumberton to Raeford via Red Springs, 70; White- 
ville to Tabor, 23; Wilmington to Shallotte, 30; Shallotte to Whiteville, 
130; Supply to Southport, 130; Southport to Town Creek, 130 and 303 for 
shipments north of Wilmington and west of Bolivia. 

From Wilmington to Fayetteville via Elizabethtown, Highways Nos. 74 
and 28; between Elizabethtown and Fayetteville via Clarkton, Lumberton 
and St. Pauls, Highways Nos. 701, 211 and 301; between Elizabethtown and 
Fayetteville via Clinton, Highways Nos. 701 and 24 (without pick-up in 
Wilmington for Clinton). The above route numbers have been changed from 
those which appear on Certificate No. 263 from which this amendment is 
transferred, so as to conform to the current highway numbers.) 

Queen City Coach Company, Inc., L. A. Love, Manager, Charlotte, N. C. 

Certificate No. 240. 
Passenger: 

(1) Between Wilmington and Asheville, over U. S. Highway No. 74, via 
the towns and cities of Leland, Chadbourn, Boardman, Lumberton, Maxton, 
Rockingham, Wadesboro, Monroe, Matthews, Charlotte, Gastonia, Shelby, 
Rutherfordton, Lake Lure, and Fairview. 

(1-a) Between Chadbourn and N. C.-S. C. State Line over U. S. Highway 
No. 76 via Cerro Gordo and Fair Bluff. 

(1-b) Between Boardman and Fairmont over N. C. Highway No. 71, via 
Orrum. 

(1-c) Between Lumberton and N. C.-S. C. State Line over N. C. High- 
way No. 41, via Fairmont. 

(1-d) Between Fayetteville and intersection of N. C. Highway No. 87 
with U. S. 74 near Acme over N. C. Highway No. 87, via Tarheel, 
Dublin and Elizabethtown. 

(1-e) Between Raeford and Elizabethtown over N. C. Highway No. 211 
and U. S. No. 701, via Red Springs, Lumberton, Bladenboro and Clarkton. 

(1-f) Between Fayetteville and N. C.-S. C. State Line over U. S. High- 
way No. 301, via St. Paul, Lumberton and Rowland. 

(1-g) Between Maxton and Goldsboro over N. C. No. 71, U. S. 301, N. C. 
102 and U. S. 117 via Red Springs, Parkton, Fayetteville and Newton 
Grove. 

(1-h) Between Wadesboro and N. C.-S. C. State Line over IT. S. No. 52 
via Morven and McFarlan. 

(1-i) Between Monroe and N. C.-S. C. State Line over N. C. No. 151. 

(1-j) Between intersection N. C. No. 7 with U. S. 74, over N. C. 7 via 
Belmont, McAdenville, Lowell, and Gastonia. 

(1-k) Between Gastonia and Cherryville over N. C. 274, via Bessemer 
City; and between Bessemer City and Kings Mountain over Highway 
N. C. 161. 



136 N". C. Utilities Commission 

(1-1) Between Bat Cave and Hendersonville over U. S. 64 via Edney- 
ville. 

(1-m) Between Monroe and N. C.-S. C. State Line (Lancaster) via 
N. C. 200. 

(1-n) Between Shelby, N. C. and Salisbury, N. C, over N. C. 150 via 
Cherryville, Lincolnton, and Mooresville. 

(2) Between Salisbury and N. C.-Tenn. State Line over U. S. 70, N. C. 
212, and 208 via Statesville, Hickory, Morganton, Marion, Asheville, 
Marshall and Walnut. (Destination over N. C. Highway 208 to Greenville, 
Tenn. and over N. C. Highway 212 to Erwin, Tenn.) 

(2-a) From Junction U. S. 70 and N. C. 10 to Newton over N. C. 10 via 
Catawba. 

(2nb) Between Asheville and N. C.-Tennessee State Line over U. S. 23 
via Weaverville, Swiss and Ramseytown. 

(2-c) Between Forks of Ivey via Mars Hill over N. C. 213, 213A, and 
N. C. 36 and N. C.-Tenn. State Line via Faust and Little Creek. 

(2-d) Between Mars Hill over N. C. 213, U. S. 23, U. S. 19E and N. C.- 
Tenn. State Line near Elk Park via Swiss, Burnsville, Micaville, Spruce 
Pine, Ingalls, Plumtree, and Cranberry. 

(2-e) Between Blowing Rock, N. C. and Marion over U. S. 221 via 
Linville, Pineola, Crossnore, Linville Falls, Asheford and Woodlawn. 

(2-f) Between Elk Park and Ingalls over N. C. 194 via Newland and 
Crossnore. 

(2-g) Between Newland and Linville over N. C. 181. 

(2-h) Between Marion and Bakersville over N. C. 26 via Little Switzer- 
land and Penland. 

(2-i) Between Asheville and Oteen over N. C. 81 via Biltmore and 
Recreation Park. 

(2-j) From Junction U. S. 70 and N. C. 10 to Newton over N. C. 10 via 
Catawba. 

(3) Between Elk Park and Charlotte over N. C. 194, U. S. 421, U. S. 321, 
and N. C. 27 via Heaton, Valle Crucis, Sugar Grove, Vilas, Boone, Blowing 
Rock, Lenoir, Hickory, Newton, Lincolnton and Mt. Holly. 

(3-a) From Charlotte to Junction County Road and N. C. 27 at Paw 
Creek over N. C. 271 and County Road. 

(4) Between Fayetteville and Jacksonville over N. C. 24 via Clinton, 
Warsaw, Kenansville and Richlands and from Kenansville to Kinston over 
N. C. 11 via Deep Run and Pink Hill. 

(4-a) Between Roseboro and Salemburg over N. C. 242. 
(4-b) Between Clinton and Dunn over U. S. Highway 421. 

(5) Between Wilmington and Fort Fisher over Highway U. S. 421 via 
Carolina Beach. 

(6) The agreement between Queen City Coach Company and the Queen 
City Lines, Inc., as of August 24, 1932, is hereby carried forward as between 
the Queen City Coach Company and the Atlantic Greyhound Corporation. 
The agreement above referred to provides that neither company shall oper- 
ate any schedule which departs from Charlotte for Kings Mountain or 
from Kings Mountain for Charlotte within one hour of the departure of any 
schedule operated by the other company, except by the mutual consent of 
both parties in writing by and with the approval of the North Carolina 



Decisions and Adjustments of Complaints 137 

Utilities Commissioner, and further provided that each shall have an equal 
right to operate between Charlotte and Kings Mountain over both the old 
and new North Carolina State Highways by way of the towns of Belmont, 
McAdenville, Lowell, Ranlo and Gastonia. 

Railway Express Agency, Inc., 89 Luckie Street, N.W., Atlanta, Ga. Certificate 
No. 456. 
Freight: Salisbury and Norwood, Highway No. 80 via Granite Quarry, 
Rockwell, Gold Hill, Richfield, New London, Albemarle and Badin, Win- 
ston-Salem to Rural Hall to Mount Airy over Highway No. 52; Greens- 
boro to Summerfield and Stokesdale over Highway No. 220 to intersection 
of Highway No. 65 to intersection of Highway No. 68 over Highway No. 68 
to Stokesdale; Greensboro to Climax and Sanford over Highways Nos. 421, 
22 and 61, said operation to Climax being an off-route over Highways Nos. 
22 and 61 from Highway No. 421; and Siler City to Ramseur over Highway 
No. 64. 

R. & R. Transit Company, Inc., 700 West Salisbury Street, Asheboro, N. C. 
Certificate No. 465. 
Passenger: Over North Fayetteville Street and Highway No. 220 to the 
intersection of Highway No. 62, located three tenths of a mile beyond the 
end of the city franchise limit; thence over Highway No. 62 to Central Falls 
a distance of approximately four miles. From Asheboro over Highway No. 
220 and Highway No. 62 to a point about four miles from the intersection 
of said Highway No. 62 with Highway No. 220 via Central Falls; thence 
over County Road to Cedar Falls; thence by nearest route over County 
Road to intersection in Highway No. 64; thence over Highway No. 64 to 
Asheboro. 
Rocky Mount-Norfolk Truck Line, 37 Nebraska Street, Norfolk, Va. Cer- 
tificate No. 287. 
Freight: Rocky Mount to N. C.-Va. State Line 40, 48 and 12 via Weldon, 
Murfreesboro and Como. (For interstate operation only.) 

Salisbury-Mount Airy Coach Company, E. O. Woodie d /b /a, Salisbury, N. C. 
Certificate No. 479. 
Passenger: Between Salisbury and Mount Airy, N. C. over Highway No. 
601 from Salisbury' to Boonville via Mocksville and Yadkinville; thence 
over Highway No. 67 from Boonville to Elkin; thence over Highway No. 
268 from Elkin back to Highway No. 601; thence to Mount Airy via Dobson 
and White Plains and return. 

Receivers of Seaboard Air Line Railway, Norfolk, Va. Certificate No. 422. 
Freight: Monroe to Hamlet over Route 20. Monroe and Waxhaw, High- 
way No. 75; Hamlet and the N. C.-S. C. State Line via State Highway No. 77. 

Seashore Transportation Company, James M. West, President, New Bern, 
N. C. Certificate No. 122. 
Passenger: Washington to Wilmington via New Bern, 30; Goldsboro to 
Beaufort via Kinston and New Bern, 10; Kinston to Pollocksville via 
Trenton, 12; Beaufort to Atlantic, unnumbered highway; Goldsboro to 
Rocky Mount via Wilson, 40 ; Wilson to Rocky Mount via Elm City and 
Sharpsburg, Highway 40. 



138 N". C. Utilities Commission 

Shelby Transit Company, Inc., Shelby, N. C. Certificate No. 444. 

Passenger: Streets of City of Shelby; extension of East Marion Street, 
N. C. Highway No. 20; From City Limits to Cleveland County Fairgrounds; 
Extension of West Marion Street from City Limits to Dover and Ora Mills 
and to City Limits at East Lee Street. 

Smith's Transfer Corporation, Lenoir, N. C. Certificate No. 142. 

Freight: Hickory to North Carolina-Tenn. State Line via Morganton, 
Asheville, Marshall, Walnut and Hot Springs, 10 and 20; Hickory to Boone, 
17; Lenoir to Morganton, 18; Asheville to North Carolina-Tennessee State 
Line, Highway 10 via Waynesville, Dillsboro and Murphy; Asheville to 
Waynesville via Canton, Highway 10. Hickory to Statesville, Highway No. 
70, Statesville to Charlotte, Highway No. 21 (in accordance with agreement 
dated February 15, 1939, contained in Docket No. 1535), Charlotte over No. 
271 to intersection of Highway No. 150 near Denver; thence over No. 150 
through Lincolnton without pick-up or delivery in Lincolnton; thence over 
No. 27 to intersection of No. 18 near Toluca; thence No. 18 to Morganton. 

Smoky Mountain Stages, Inc., Asheville, N. C. Certificate No. 400. 

Passenger: Between Asheville and Georgia-North Carolina State Line 
over U. S. Highway No. 19, U. S. Highway No. 64 and State Highway No. 60 
via the towns of Candler, Waynesville, Sylva, Bryson City, Murphy and 
Culberson; from Dillsboro to North Carolina-Georgia State Line over U. S. 
No. 23, via the town of Franklin; from Franklin to Pisgah Forest over 
U. S. Highway No. 64 (old State No. 28) via the towns of Highlands, 
Cashiers, Sapphire, Rosman and Brevard with High Hampton and Lake 
Toxaway as off route points; from Pisgah Forest to Asheville over State 
Highways Nos. 284, 280 and 191, via the towns of Mills River, Avery's Creek 
and West Asheville; from Ela to the North Carolina-Tennessee State Line 
at Newfound Gap over State Highway No. 107; from Cherokee to Gateway 
of State Highway No. 107E; from intersection of State Highway No. 60 with 
U. S. No. 64 to Tennessee-North Carolina State Line over U. S. No. 64 via 
Ranger; from intersection of State Highway No. 294 with U. S. No. 64 over 
State No. 294 to North Carolina-Tennessee State Line via Postell with 
Hiawassee TVA Dam as off route point; from Rosman to North Carolina- 
South Carolina State Line via U. S. Highway No. 178; from Highlands to 
North Carolina-Georgia State Line over State Highway No. 28; From Sylva 
to Cashiers via Cullowhee, Tuckaseigee and Glenville over State Highway 
No. 106. 

J. W. Snow Bus Line, 432 Fairview Road, Biltmore, N. C. Certificate No. 346. 
Passenger: From Pack Square in Asheville south along Biltmore Ave., to 
Biltmore; to old Fairview Road (old State Highway No. 20) to the Farmer's 
Federation Bldg., and return over same route. 

Southeastern Motor Lines, Inc., Bristol, Tenn.-Va. Certificate No. 477. 

Freight: Boone, N. C. to the N. C.-Tenn. State Line, destination Bristol, 
Tennessee, via Highway No. 60 via Vilas and Zionville; Zionville to Lansing, 
via West Jefferson and Warrensville, 16 and 161; Vilas to Elk Park via 
Banners Elk, Highway No. 194; Blowing Rock to the N. C.-Tenn. State Line 
via Linville, Newland, Cranberry and Elk Park, Highways Nos. 28, 181 



Decisions and Adjustments of Complaints 139 

and 69; Boone to North Wilkesboro, Highway No. 60. West Jefferson to 
Winston-Salem via Sparta and Doughton strictly upon condition that oper- 
ator shall not receive or deliver any intrastate shipments between Winston- 
Salem and Doughton and neither receive nor deliver any shipments from 
Winston-Salem to North Wilkesboro or from North Wilkesboro to Winston- 
Salem. 

S. N. & S. Line, David Lowe d/b/a, North Wilkesboro, N. C. Certificate No. 
459. 

Passenger: Between Sparta and Statesville via Laurel Springs, Highways 
Nos. 18, 421 and 115. 

Stallings Transfer Service, Russell Stallings, Spring Hope, N. C. Certificate 
No. 227. 
Freight: Raleigh to Rocky Mount, No. 90; Zebulon to Rocky Mount via 
Wilson, Nos. 91 and 40. Rocky Mount to Lawrence via Leggett, Highway No. 
95; thence over Highway No. 258, Lawrence to Rich Square via Scotland 
Neck; thence Rich Square Highway No. 305 to Aulander; thence Highway 
No. 30; Aulander to Elizabeth City via Ahoskie, Winton, Roduco, Gates- 
ville and Sunbury. 

Thurston Motor Lines, D. J. Thurston, Box 1003, Wilson, N. C. Certificate 
No. 399. 

Freight: Goldsboro, N. C, to N. C.-Va. State Line via Wilson and Rocky 
Mount, 40, optional over 481; Rocky Mount to Williamston via Tarboro and 
Bethel, 90; Williamston to Washington, 30; Washington to Wilson via 
Greenville and Farmville, 91; Wilson to Fayetteville via Smithfield and 
Dunn, Highway 22, with limits on shipments picked up in Dunn for Fa- 
yetteville or in Fayetteville for Dunn, provided he may operate by Erwin 
over Routes 60 and 55 with shipments not originating in Dunn or Fayette- 
ville for points north of Wilson. Wilson and Snow Hill via Stantonsburg 
over N. C. Highways Nos. 58 and 102; Between Tarboro and Kinston via 
Crisp, Fountain, Farmville and Snow Hill over U. S. Highway No. 258; 
Between Rocky Mount and New Bern via Pine Tops and Greenville to 
Vanceboro over N. C. Highway No. 43; and thence via Askin and Bridgeton 
over U. S. Highway 17; And between Bethel and Kinston via Greenville, 
Ayden, Grifton, and Graingers over N. C. Highway No. 11, subject to the 
following conditions: Thurston Motor Lines shall not accept at New Bern 
and at Vanceboro and at points intermediate shipments destined to Norfolk. 
That they shall not accept at Snow Hill, Goldsboro, Kinston and New Bern 
and at intermediate points, shipments destined for Snow Hill, Goldsboro, 
Kinston and New Bern or intermediate points. Rosemary and the N. C.-Va. 
State Line via Weldon, Murfreesboro and Como, Highways Nos. 48 and 12. 
Kinston to Wilmington via Route No. 121 to Richlands via Route 24 to 
Jacksonville, via Route No. 40 to Wilmington with Deep Run and Pink Hill 
as off route points. 

Tide Water Power Company, Wilmington, N. C. Certificate No. 447. 

Passenger: Beginning at Front and Princess streets and over such streets 
as approved by City Council of Wilmington; thence on Route No. 20 to 
Wrightsville Beach via causeway and bridge to Wrightsville Beach and over 



140 "N. C. Utilities Commission 

such streets as may be approved by Wrightsville Board of Commissioners; 
Also over route from City Limits of Wilmington over old shell road to 
Wrightsville Sound. 

Traphill Bus Line, J. D. Nicholson and Paul Holbrook, Owners, Traphill, 
N. C. Certificate No. 466 and 466A. 
Passenger: Between Doughton and Wilkesboro via Traphill and Hayes. 

Turner's Trucking Line, Nemiah Goldstein and Raymond G. Smith, d /b/a, 
Asheville, N. C. Certificate No. 472. 
Freight: Between Asheville and Hendersonville over Highway No. 25; 
thence to Brevard over Highway No. 64; thence from Brevard over High- 
ways Nos. 280 and 191 to Asheville daily. Beyond Brevard to Lake Toxaway 
via Rosman, Highway No. 64. 

United Express Company, Henderson, N. C. Certificate No. 398. 
Freight: Henderson to Weldon via Norlina, 48. 

Virginia-Carolina Coach Company, Richmond, Va. Certificate No. 428. 

Passenger: Weldon and the N. C.-Va. State Line via Highway No. 40; 
Weldon to Rocky Mount, Highway No. 40, for both interstate and intra- 
state operation. Jacksonville to Rocky Mount via Richlands, Kinston, Snow 
Hill, Farmville and Pinetops over U. S. Highway No. 258; thence from 
Pinetops to Rocky Mount over N. C. Route No. 43. County Highway via 
High School between Pinetops and Macclesfield; thence over No. 124 from 
Macclesfield to Crisp, N. C. 

Virginia-Carolina Transportation Company, Edenton, N. C. Certificate No. 
233. 
Freight: Between North Carolina- Virginia State Line, via South Mills, 
Elizabeth City, Hertford, Edenton, Windsor, Williamston, Mineola, Wash- 
ington, Vanceboro, New Bern, Newport, Morehead City to Beaufort over 
U. S. Highways Nos. 17 and 70; thence between Elizabeth City and the 
North Carolina-Virginia State Line via Sligo and Camden over N. C High- 
ways Nos. 30 and 34; thence Williamston to Columbia via Jamesville, 
Plymouth, Roper, Mackeys and Creswell over U. S. Highway No. 64. 

Virginia Dare Transportation Company, R. B. Etheridge and G. H. Lennon, 
Manteo, N. C. Certificate No. 342. 

Passenger: Manteo to Elizabeth City via Nags Head, Kill Devil Hill and 
Currituck Bridge, 345, 344, 34; Manteo to Wanchese, 345. 

Freight: Manteo to Norfolk, 345, 344, 34 via Kill Devil Hill, Sligo and 
Moyock; Manteo to Wanchese, 345; Manteo to Stumpy Point via Mann's 
Harbor; Sligo to Elizabeth City, Route 34. Between Junction of 30 and 
"Currituck Short Cut" near Camden and Junction of 34 and "Currituck 
Short Cut" near Coinjock, over the road joining 30 and 34 known as "Cur- 
rituck Short Cut" and at present designated by the State Highway Com- 
mission as N. C. 30. 
Virginia Stage Lines, Incorporated, Charlottesville, Va. Certificate No. 409. 

Passenger: N. C. State Line to Yanceyville on Route 14 and from Yancey- 
ville to Haw River on Route 62 and on the north side of the railroad track 
on Route 10 to Burlington. Durham and the N. C.-Va. State Line via Rox- 



Decisions and Adjustments of Complaints 141 

boro, Highway No. 55; Roxboro to the N. C.-Va. State Line via Semore, 
Highways Nos. 57 and 14; Also Highway No. 158 via Leasburg between 
Roxboro and Yanceyville. 

Waccamaw Stages, Incorporated, Whiteville, N. C. Certificate No. 468. 

Passenger: From Clarkton, N. C. over Federal Highway No. 701 to South 
Carolina State Line, on edge of Tabor City. 

Warj> Transfer Company, Wilmington, N. C. Certificate No. 455. 

Freight: Wilmington to Durham via Clinton, U. S. Route No. 421; Clinton 
to Dunn via U. S. Route No. 701 to Newton Grove and No. 55 to Dunn; Dunn 
to Erwin via U. S. Route No. 421; Erwin to Raleigh via No. 55 and U. S. 
15 A; Raleigh to Durham via U. S. No. 15 A, N. C. No. 9 and U. S. No. 70. 
No freight to be taken on at Raleigh to be delivered in Durham nor any 
freight in Durham to be delivered in Raleigh. 

Washington-Orxental Bus Line, O. S. Flanagan, Owner, Washington, N. C. 
Certificate No. 434. 
Passenger: Washington and Oriental Route No. 33 from Washington to 
Aurora; Route No. 306 from Aurora to Grantsboro and Route No. 302 from 
Grantsboro to Oriental. 

Wilkes Transportation Company, Inc., North Wilkesboro, N. C. Certificate 
No. 461. 
Passenger: In the City of Wilkesboro over Tenth Street and D; Ninth 
Street and C. B. and Sixth Street; Fourth and F to corporate limits; Main 
Street through the town of Wilkesboro and over Highway 421 and 16 to 
Millers Creek, six miles; Highway 18 to Fairplane, two miles; Highways 16 
and 18 to Moravian Falls, five miles; Highway 421 E. to Wilkesboro, two 
miles. 

Wilmington-Brunswick and Southern Railroad Company, H. M. Shannon, 
Manager, Southport, N. C. Certificate No. 316. 
Passenger: Southport, over Route 201, nine miles to Wilse Smith's; thence 
over county road to Bolivia; thence on Route 201 to the Brunswick River; 
thence over Route 20 to Wilmington. 

Freight: Southport over Route 30 to intersection of Route 303; thence 
over 303 to the intersection of Route 30 south of Town Creek; thence over 
Route 30 to the intersection of Route 20 at Navassa; thence to Wilmington 
over Route 20. 

Winston-Elkin Motor Express, V. L. Renegar, Elkin, N. C. Certificate No. 
234. 

Freight: Winston-Salem to Elkin, 60, 26 via Yadkinville, Boonville and 
Brooks Cross Roads; Winston-Salem to Elkin via East Bend and Boonville, 
60, 67, 26; Elkin to Roaring Gap, 26, for seasonal service. 



142 N". C. Utilities Commission 

LICENSED AS EXCLUSIVE INTERSTATE OPERATORS FOR 1940 

Statistics not sufficiently complete to report. 
Permit No. 

1. Barnwell Brothers, Inc., Burlington, N. C. 

2. J. W. Propst, Jr., Inc., Concord, N. C. 

5. Horton Motor Lines, Inc., Charlotte, N. C. 

7. Warren Transfer Company, Charlotte, N. C. 

8. Lewis & Holmes Motor Freight Corporation, High Point, N. C. 
25. L. H. Bottoms Truck Lines, Inc., High Point, N. C. 

27. Madison Transfer Company, John D. Blair, Owner, Richmond, Va. 

39. N. B. & C. Motor Lines, Inc., Washington, N. C. 

41. Rutherford Freight Lines, Inc., E. J. Rutherford, Secretary, Bristol, 

Tenn.-Va. 
45. Miller Motor Express, Charlotte, N. C. 

50. Motor Transit Company, Raleigh, N. C. 

51. Gate City Transport Company, Inc., Greensboro, N. C. 
54. J. Lester Miller, Inc., Concord, N. C. 

57. New South Express Lines, Inc., Columbia, S. C. 

59. Pan-American Bus Lines, Mr. Paul R. Sheehan, President, Charlotte, N. C. 

60. Smith's Transfer Company, Lenoir, N. C. 

62. Norfolk Southern Bus Corporation, Norfolk, Va. 

64. Elizabeth City-Carolina Line, Elizabeth City, N. C. 

65. J. M. Coggins and Clarence Coggins d/b /a, Interstate Transfer, High 

Point, N. C. 

66. Charles S. Cooke, Murfreesboro, N. C. 

70. Atlantic States Motor Lines, Inc., High Point, N. C. 

71. Raleigh H. Blow, Murfreesboro, N. C. 

72. Burton Lines, Inc., Reidsville, N. C. 

74. Vick Truck Line, Woodland, N. C. 

75. Walter H. Beale, Potecasi, N. C. 

77. Walph L. Whitehead, Hobgood, N. C. 

78. Tayloe & Evans, Inc., Ahoskie, N. C. 
80. Royal Parker Watson, Severn, N. C. 

83. The Mason & Dixon Lines, Inc., Kingsport, Tenn. 

85. R. H. B. Motor Lines, Conway, N. C. 

86. G. L. Cox Motor Lines, Greensboro, N. C. 

88. Julian P. Porter, Severn, N. C. 

89. William Barham Porter, Severn, N. C. 

93. Hennis Freight Lines, S. H. and H. L. Hennis, Owners, Mount Airy, N. C. 

95. Ross Motor Lines, Inc., Gastonia, N. C. 

96. J. M. Anderson t/a, Anderson Transfer Company, Murfreesboro, N. C. 

97. Forbes Transfer Company, Wilson, N. C. 

98. B. G. Costich & Sons, Inc., 271 Maynard Avenue, Rochester, N. Y. 

99. Ricks Tours, Greenville, N. C. 

100. Akers Motor Lines, Inc., Gastonia, N. C. 

101. Hipp & Cress, Salisbury, N. C. 

102. J. H. Axley Truck Lines, Murphy, N. C. 

105. Mr. and Mrs. G. W. Smith, Wilson, N. C. 

106. Dickson Transfer & Trucking, Inc., 24 N. High Street, Akron, Ohio. 






Decisions and Adjustments of Complaints 143 

107. J. T. Dailey Company, Greensboro, N. C. 

108. Textile Transportation, Inc., Burlington, N. C. 

109. Ward Transfer Company, Wilmington, N. C. 

110. Jack Shuford Trucking, Mrs. Frances N. Shuford, Owner, Lincolnton, 

N. C. 

111. Shaw Transfer Company, Salisbury, N. C. 

112. Transportation, Inc., Charlotte, N. C. 

113. R. C. Motor Lines, Inc., 112 Stewart Street, Jacksonville, Pla. 

114. Steinla Motor and Transportation Company, 133 S. Mechanic Street, 

Cumberland, Md. 

115. J. C. Mclntyre d/b/a, Textile Motor Freight, Laurinburg, N. C. 

116. Bass Bonded Trucks, Inc., Tarboro, N. C. 

117. Barnes Truck Line, Nashville, N. C. 

118. Elders Transfer Company, Inc., Hickory, N. C. 

119. Union Storage and Warehouse Company, Inc., Charlotte, N. C. 

121. J. W. Hardy d/b/a, Hardy Transfer Company, Farmville, N. C. 

122. D. D. Jones Transfer & Warehouse Company, Inc., Norfolk, Va. 

123. Craig & Jennings, Inc., Lenoir, N. C. 

124. W. S. Pinnix Transfer Company, Winston-Salem, N. C. 

125. Melville Storage Company, 23 North 52nd Street, Philadelphia, Pa. 

126. Southern Transfer & Storage Company, St. Petersburg, Fla. 

127. Central Van & Storage Company, 531 Eighth Street, Nashville, Tenn. 

128. Thomas L. Murphy d/b/a, Murphy's Storage Warehouse, 200 Middle Neck 

Road, Great Neck, N. Y. 

129. Textile Warehouse Company, Greenville, S. C. 

131. Philadelphia Detroit Lines, Inc., Jacksonville, Fla. 

132. William A. Morris, Inc., West New Brighton, Staten Island, N. Y. 

133. R. L. Danve Trucking Company, 1811 Russell Street, Covington, Ky. 

134. John Nazarian, 50 Prentiss St., Watertown, Mass. 

135. American Storage Company, 28 George Avenue, N.W., Washington, D. C. 

137. Henry E. Brinkerhoff, 1439 Regina Street, Harrisburg, Pa. 

138. Vernon T. Mercer, Ashe Court, Lancaster Pike, Coatsville, Pa. 

140. Jones Transfer Company, Inc., Salisbury, N. C. 

141. Reliable Transport, Inc., Raleigh, N. C. 

142. William L. Curies, 2033 Nichols Ave., S.E., Washington, D. C. 

144. Turner's Transfer, Guy M. and Frank B. Turner, Greensboro, N. C. 

145. Central Storage and Van Company, 1101-13 Jackson Street, Omaha, Ne- 

braska. 

146. A. Driemeier Storage & Moving Company, 3615 North 20 Street, St. 

Louis, Mo. 

147. W. T. Taylor, Jr., Como, N. C. 

149. W. M. Stephenson & Sons d/b/a, W. M. Stephenson, Pendleton, N. C. 

150. A. & E. Truck Line, Battleboro, N. C. 

151. Clay's Transfer Company, Rocky Mount, N. C. 

152. Karl Lenker d/b/a, Dixie Transfer, 305 N. 18th Street, Richmond, Va. 

153. C. H. Sharpe and C. E. Williams, d/b/a, S. & W. Motor Lines, Greens- 

boro, N. C. 

154. Martin T. O'Rourke t/a, O'Rourke Storage & Transfer Company, Pitts- 

burgh, Pa. 
156. Bondurant Motor Lines, Mount Airy, N. C. 



144 ~N. C. Utilities Commission 

157. L. H. Renner d/b/a, Renner Motor Lines, 86 Houston Street, Barberton, 

Ohio. 

158. Central Motor Lines, Inc., Kannapolis, N. C. 

159. Black's Motor Express, D. J. Black, Owner, Wilmington, N. C. 

160. Colonial Motor Freight Line, High Point, N. C. 

161. Kilgo Transfer Company, Inc., 229 E. 8th Street, Charlotte, N. C. 

162. J. N. Youngblood Truck Lines, Fletcher, N. C. 

163. Tatum-Dalton Transfer Company, 111 E. Edwards Place, Greensboro, N. C. 

164. Textile Truckers, Inc., Mount Airy, N. C. 

165. Carolina Freight Carriers Corporation, Cherryville, N. C. 

167. M. P. McLean, Jr., t/a, McLean Trucking Company, Fayetteville, N. C. 

168. Collins Transfer & Storage, Lumberton, N. C. 

169. Paul Siler d/b/a, Siler Brothers, Siler City, N. C. 

170. E. & H. Trucking Company, Inc., Albemarle, N. C. 

171. Weldon Trucking Company, Inc., Weldon, N. C. 

172. J. W. Turnmire, d/b/a, S. & T. Truck, Lenoir, N. C. 

173. R. D. Fowler Motor Lines, Inc., Box 1043, High Point, N. C. 

174. Morgan Trucking Company, Leaksville, N. C. 

175. Vance Trucking Company, Inc., Henderson, N. C. 

176. Great Southern Trucking Company, Charlotte, N. C. 

177. J. H. Early, Henderson, N. C. 

178. The W. H. Tompkins Company, 908 3rd Avenue, North, Nashville, Tenn. 

179. M. C. Garner, Apex, N. C. 

182. Judson McCarter, Lumberton, N. C. 

183. Mrs. Mae C. Brown and J. C. Brown t/a, Charles T. Brown Truck Line, 

1203 Asheboro Street, Greensboro, N. C. 

184. Robinson Transfer Motor Line, Inc., 545 E. Main Street, Kingsport, Tenn. 

185. Yellow Star Transfer, Inc., Burlington, N. C. 

187. American Trucking Corporation, Lessee of J. T. Dailey Company, High 

Point, N. C. 

188. H. W. Miller, Durham, N. C. 

189. Jackson Truck Line, Inc., Jackson, N. C. 

190. Brooks Transportation Company, Inc., Richmond, Va. 

191. Albert G. Thompson d/b/a, Thompson Transfer Company, Charlotte, N. C. 

192. Harris Brothers Transfer Company, Inc., Charlotte, N. C. 

193. G. & M. Motor Transfer Company, Statesville, N. C. 

194. Carolina Stages, Spartanburg, S. C. 

195. Julius Efron d/b/a, Efron Trucking Company and/or Max Efron 

d/b/a, Interstate Trucking Company, Aiken, S. C. 

196. Lloyd E. Colburn, Morehead City, N. C. 

198. Peoples Motor Express, Inc., Charleston, S. C. 

199. Albert E. Hill and James W. Hill d/b/a, Hill's Truck Line, Murfrees- 

boro, N. C. 

200. H. E. Dickey d/b/a, Dickey Freight Line, Murphy, N. C. 

202. Hooks Motor Line, 221 W. High Street, High Point, N. C. 

203. Dillings Transfer Corporation, Inc., Lexington, N. C. 

204. Davis Motor Lines, Inc., Charlotte, N. C. 

207. Queen Trucking Company, Inc., North Wilkesboro, N. C. 

208. Lipe Motor Lines, Hickory, N. C. 

209. North American Van Lines Inc., 1220 Superior Avenue, Cleveland, Ohio. 



Decisions and Adjustments of Complaints 145 

210. Burlington Truckers, Inc., Burlington, N. C. 

211. J. C. Bankett, Route 4, Salisbury, N. C. 
215. R. Glenn Winecoff, Concord, N. C. 

214. B. & B. Transfer, E. 3rd Street, Winston-Salem, N. C. 

212. The A. G. Boone Company, Charlotte, N. C. 

213. Batten Livery Company, Inc., Mount Gilead, N. C. 

217. The Tallant Transfer Company, Inc., Hickory, N. C. 

218. Swifts Transfer Company, Gastonia, N. C. 

219. Whisenant Transfer Company, Maiden, N. C. 

220. G. & H. Transit Company, Inc., P. 0. Box No. 1626, Charlotte, N. C. 

221. Helms Transfer Company, Monroe, N. C. 

222. G. N. Childress Transportation Company, Box 252, Sanford, N. C. 

223. Winchester Trucking Company, Monroe, N. C. 

224. Thomas Stanley Redding, Asheboro, N. C. 

225. J. H. Burgess, Leaksville, N. C. 

226. E. S. Britt t/a, Britt Transportation Company, Rocky Mount, N. C. 

227. 0. G. Drennan, Maxton, N. C. 

228. Berry & Decker Transfer, Hildebran, N. C. 

230. Johnson Brothers, Elkin, N. C. 

231. Richardson Motor Lines, Greensboro, N. C. 

232. Northeastern Lines, Inc., Lexington, N. C. 

233. Moss Transfer Company, Charlotte, N. C. 

234. J. Claude Bush d/b/a, Bush Transfer, Lenoir, N. C. 

235. Matt Hines, Mount Airy, N. C. 

236. Yount Transfer— L. R. Yount d/b/a, Hickory, N. C. 

237. L. C. Youngblood Truck Lines, Fletcher, N. C. 

238. Wick G. Vannoy, West Jefferson, N. C. 

239. Dan A. Smith, Vass, N. C. 

240. T. Colvin Beane, Laurinburg, N. C. 

241. Bruce Johnson, Morven, N. C. 

242. G. W. Anderson d/b/a, Anderson Transfer Company, Asheville, N. C. 

243. A. W. Colwell, Jr., J. D. and W. B. Strickland d/b/a, C. & S. B. Transfer, 

Clinton, N. C. 

245. Norman Howard Gregory, Poplar Branch, N. C. 

246. Hall Hudgins Truck Lines, North Wilkesboro, N. C. 

247. R. W. Wilson, Yanceyville, N. C. 

248. T. C. Howell t/a, Howell Transfer Company, Shelby, N. C. 

249. Roadway Express, Inc., Charlotte, N. C. 

250. R. L. McGee d/b/a, R. L, McGee Truck Lines, Weldon, N. C. 

251. Dail Trucking Company, Inc., Mount Olive, N. C. 

252. Jas. E. Hedrick t/a, Hedrick Motor Lines, High Point, N. C. 

253. Holland Brothers, Statesville, N. C. 

254. Carl Rose d/b/a, Carl Rose Transfer Company, Elkin, N. C. 

255. Wayne Motor Lines, Mount Olive, N. C. 

256. Reliable Trucking Company, Inc., High Point, N. C. 

257. L. L. Brown d/b/a, Brown's Truck Line, Rich Square, N. C. 

258. O. T. Davis t/a, Lexington Forwarding Company, Lexington, N. C. 

259. Brittian Freight Lines, Inc., Black Mountain, N. C. 

260. Old Hickory Motor Freight Inc., Thomasville, N. C. 



146 JN". C. Utilities Commission 

261. Claude S. Henry d/b/a, C. S. Henry Transfer, Rocky Mount, N. C. 

262. John Reedie Pate, Clinton, N. C. 

263. Hoffler & Boney Transfer Company, Inc., Wallace, N. C. 

264. Alton Edward Grimes, Robersonville, N. C. 

265. Daniel Elijah Everett, Conetoe, N. C. 

266. A. P. Warlick, Warlick Trucking Company, Kings Mountain. 

267. Frank Wilson Carmichael, Laurinburg, N. C. 

268. Lamont Hand, d/b/a, Hand Transfer Company, Charlotte, N. C. 

269. R. H. & R. H. Maultsby, Jr., Southport, N. C. 

270. Martin County Transfer Company, Inc., and/or C. D. Carraway, Rober- 

sonville, N. C. 

271. P. D. McLawhorn, d/b/a, Service Transfer Company, Ayden, N. C. 

272. Lin Bumgarner d/b/a, Lin Bumgarner Truck Lines, North Wilkesboro, 

N. C. 

273. B. P. Wright d/b/a, Wright Motor Lines, Asheville, N. C. 

274. Commercial Carriers, Inc., 1201 Peoples State Building, Pontiac, Mich. 

275. W. T. Bunting, Robersonville, N. C. 

276. F. P. Eller Trucking Company, Inc., North Wilkesboro, N. C. 

277. D. L. Boone and L. T. Warrick t/a, B. & W. Truck Line, Jackson, N. C. 

278. M. & K. Motor Express, Nashville, N. C. 

279. Buckeye Southern, Inc., Monroe, N. C. 

280. W. G. Joyner d/b/a, Joyner Trucking Company, Woodland, N. C. 

281. Tar Heel Motor Lines, Charlotte, N. C. 

282. Fred's Truck Line, F. S. Winslow d/b/a, Winfall, N. C. 

283. Evans Trucking Company, Stoneville, N. C. 

284. George M. Holton d/b/a, R. & W. Motor Lines, Grantsboro, N. C. 

285. M. G. Widenhouse d/b/a, Widenhouse Transfer Company, Midland, N. C. 

286. E. & L. Transport Company, Dearborn, Mich. 

287. C. Hobson Dunn, Magnolia Building, Dallas, Texas. 

288. J. S. Mann, Merry Oaks, N. C. 

289. S. H. & L. S. Ratliff d/b/a, Ratliff & Ratliff, Morven, N. C. 

290. Pan-American Trailways, Inc., Charlottesville, Virginia. 

291. T. H. Motor Lines, Inc., 310 Yarmouth St., Norfolk, Virginia. 

292. Neel Gap Bus Line, Inc., Gainesville, Ga. 

MOTOR CARRIER RATES, RATINGS AND REGULATIONS 

Explosives and other dangerous articles, Tariff of Rules Governing Trans- 
portation of: Application of C. F. Jackson, Agent, of participating carriers to 
modify rules. Approved. Docket 1538. 

Explosives and dangerous articles, Rules Governing Transportation of: 
Application of C. F. Jackson, Agent of participating carriers to modify rules. 
Approved as to carriers under this Commission's jurisdiction. Docket 1538. 

Motor Carrier Classification Ratings : Application by Agent C. F. Jackson, on 
behalf of certificated motor carriers operating intrastate to revise classification 
ratings on various articles resulting in both increases and reductions. Ap- 
proved. Docket 914. 

Motor Carrier Classification Ratings : Application by Agent C. F. Jackson, on 
behalf of North Carolina certificated motor carriers of property to revise 






Decisions and Adjustments of Complaints 147 

classification ratings resulting in both increases and reductions. Approved. 
Docket 1232. 

Petroleum; and its products, L.T.L.: Application by R. S. Cooper, Agent, 
Motor Carriers Traffic Association, on behalf of franchise carriers to cancel 
exception rating Class 40, applying in lieu thereof full classification basis. 
Denied. Docket 116-T. 

IN THE MATTER OF INCREASES IN FRANCHISE MOTOR CARRIER 
FREIGHT RATES AND CHARGES 

Order 
Appearances: 

R. 8. Cooper, Greensboro; D. J. Thurston, Wilson; Chas. H. Fredrick- 
son, Charlotte; R. 8. Koonce, and Jack Williams, Raleigh; A. D. 
Burton, Albemarle; C. H. Smith, Lenoir; R. N. Baroour, Fuquay 
Springs; and J. A. Pierce, Wilmington, for the petitioner; W. 8. 
Creighton and J. A. Bland, Charlotte; Carl R. Cunningham, Atlanta; 
Chas. W. Strickland, Greensboro; J. Chas. Phelps and I. M. Porter, 
Raleigh; and P. H. Johansen, Washington, D. C, for protestants. 

By an application dated April 27, 1938, R. S. Cooper, Agent for and on 
behalf of Franchise Operators, petitioned for authority to increase freight 
rates and charges published in his Motor Freight Tariff No. 1-A, N.C.U.C. 
No. 4, by amounts approximating 10 per cent, being equivalent to increases 
authorized the rail carriers in our order dated April 11, 1938. Docket 1239, 
et al. 

The hearing held on June 13, 1938, was recessed until such time as peti- 
tioner would be prepared to furnish additional data desired by protestants, 
to be more fully set forth in a bill of particulars, later submitted. On October 
22, 1938, Petitioner Cooper advised that at a recent meeting of the members 
of the State Rate Committee of the North Carolina Franchise Carriers, held 
in Charlotte, he was requested not "to pursue any further" the petition for the 
increases. He, therefore, authorized that the case be closed. 

It is Therefore Ordered, That the petition of Agent R. S. Cooper, dated 
April 27, 1938, for and on behalf of North Carolina Franchise Motor Carriers 
for authority to increase freight rates and charges published in Motor Freight 
Tariff No. 1-A, N.C.U.C. No. 4, promulgated by him, be, and the same is, 
hereby dismissed. 

This 9th day of November, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Setf, Chief Clerk. 

(SEAL) 

Docket No. 1293. 



148 IN". C. Utilities Commission 



IN THE MATTER OP INCREASES IN MOTOR VEHICLE CARRIER 

RATES 

Order of Suspension 

It Appearing that there has been filed with the Utilities Commission Sup- 
plement No. 11 to Agent R. S. Cooper's Freight Tariff No. 1-A, N.C.U.C. No. 4, 
stating new individual and joint regulations and practices affecting rates and 
charges on all articles of freight described in said tariff by making the same 
subject to American Trucking Associations, Inc., Master Tariff No. 1, Agent 
C. P. Jackson's MF-IOC No. 6, supplements thereto, or successive issues 
thereof; and 

It Further Appearing that said schedule makes certain increases in rates 
for the transportation of all articles of freight in intrastate commerce, and 
the rights and interests of the public appearing to be injuriously affected 
thereby, and it being the opinion of the Commissioner that the effective date 
of the said schedule should be postponed pending said hearing and decision 
thereon; 

It is Ordered, That the Commissioner upon complaint, without formal 
pleading, enter upon a hearing concerning the lawfulness of the rates, charges, 
regulations and practices stated in the aforementioned schedule in so far as 
it cancels, changes, or otherwise affects rates, charges, regulations and prac- 
tices applicable on all commodities contained in said tariff; 

It is Further Ordered, That the operation of Supplement 11 to Agent R. S. 
Cooper's Motor Freight Tariff No. 1-A, N.C.U.C. No. 4, be suspended and 
that the use of the rates, charges, regulations and practices therein stated be 
deferred upon intrastate traffic until the 26th day of December, 1939, unless 
otherwise ordered by the Commissioner, and no increases shall be made in 
such rates, charges, regulations and practices during the said period of sus- 
pension, unless authorized by special permission of the Commissioner; 

It is Further, Ordered, That a copy of this order be filed with said schedule 
in the office of the Commissioner and that copies thereof be forthwith served 
upon R. S. Cooper, Agent for carriers participating in the said schedule, 
which carriers are hereby made respondents in this proceeding; and 

It is Further Ordered, That this proceeding be set for hearing before the 
full Commission in its office in Raleigh, N. C, on Tuesday, October 31, 1939, 
at 10:00 o'clock a.m. 

This 18th day of September, 1939. 

By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 1293. 

IN THE MATTER OF INCREASES IN MOTOR VEHICLE 
CARRIER RATES 

Order 

Upon request of respondents: 

It is Ordered, That our order of September 18, 1939, be amended to provide 
that the use of the rates, charges, regulations, and practices stated in Supple- 
ment 11 to Agent R. S. Cooper's Motor Freight Tariff No. 1-A, N.C.U.C. No. 4, 



Decisions and Adjustments of Complaints 149 

now deferred upon intrastate traffic until the 26th day of December, 1939, 
be further suspended until the 26th day of March, 1940. 

It is Further Ordered, That the hearing now assigned for Tuesday, Octo- 
ber 31, 1939, at 10:00 o'clock a.m., be cancelled and that this proceeding be re- 
assigned for hearing before the full Commission in its office in Raleigh, N. C, 
on Tuesday, January 9, 1940, at 10:00 o'clock a.m. 

It is Further Ordered, That in all other respects the said order of Septem- 
ber 18, 1939, shall remain in full force and effect. 

This 16th day of October, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
(SEAL) 
Docket No. 1293. 

IN THE MATTER OF INCREASES IN MOTOR VEHICLE 
CARRIER RATES 

Order 

Upon consideration of request of Motor Carriers Traffic Association through 
its Agent, R. S. Cooper, for and on behalf of North Carolina intrastate fran- 
chise vehicle operators for vacation of order dated September 18, 1939, sus- 
pending Supplement No. 11 to Agent R. S. Cooper's Freight Tariff No. 1-A, 
N.C.U.C. No. 4, stating new individual and joint regulations and practices 
affecting rates and charges on all articles of freight described in said tariff 
which resulted generally in a 10 per cent increase, and for vacation of order 
dated October 16, 1939, which further deferred the application of said increases 
upon intrastate traffic until March 26, 1940; 

It is Ordered, That our orders referred to above, be, and the same are hereby, 
vacated and set aside. 

It is Further Ordered, That Supplement 11, Supplement 12, and Supple- 
ment 13, to Freight Tariff No. 1-A, NC.U.C. No. 4, be cancelled, and that the 
present rates be continued in effect. 

It is Further Ordered, That this proceeding, now assigned for hearing be- 
fore the full Commission in its office in Raleigh, on Tuesday, February 27, 1940, 
be cancelled, and that the proceeding be dismissed. 

This 29th day of January, 1940. 

Stanley Winborne, 
Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1293. 



150 1ST. C. Utilities Commission 

BUS TERMINALS 

RALEIGH, NORTH CAROLINA 

UNION PASSENGER BUS TERMINAL 

Order 

The Cause for this order arises upon the inadequacy of bus terminal 
facilities in the City of Raleigh. The present Union Passenger Bus Station in 
the City of Raleigh was established when travel by motor vehicle was in its 
infancy, and any station which was adequate eight or ten years ago without 
any enlargement of floor space during that interval, should not raise any argu- 
ment regarding its adequacy today. 

Much discussion has transpired with reference to the improvement of sta- 
tion facilities in Raleigh and no progress has been made therein. It was 
thought that a thorough renovation of the station would help but the station 
capacity is so much less than the traveling public demands that it appears to 
be impossible to keep it in a decent and sanitary condition, not to speak of the 
discomfort it imposes upon the thousands of passengers who have to use it 
monthly. Raleigh is a great transfer point between two of the largest bus lines 
operating in the state, and is located in a thickly populated section where 
practically 90 per cent who travel east, west, north and south in two-thirds of 
the state have to pass through the station. This inadequacy has been tolerated 
as long as it appears practicable to do so, therefore, it is 

Ordered that the Carolina Coach Company and the Atlantic Greyhound Cor- 
poration show cause, if cause they have, why the present Union Bus Station 
should not be enlarged to meet the present demand or a new station be obtained 
at a new location, on May 16th, at 11:00 o'clock a.m. in the office of the Utili- 
ties Commissioner in Raleigh, North Carolina. 

This eleventh day of April, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1591. 

IN THE MATTER OF A UNION BUS STATION FOR THE CITY OF 
RALEIGH, NORTH CAROLINA 

Whereas, on the 11th day of April, 1939, the Carolina Coach Company and 
the Atlantic Greyhound Corporation, the only two bus companies holding a 
franchise from the State of North Carolina authorizing the transportation of 
passengers between Raleigh and other points, were ordered by the Utilities 
Commissioner to show cause, on May 16, 1939, if cause they had, why the 
present Union Bus Station should not be enlarged or a new station con- 
structed within the City of Raleigh; 

And Whereas, after a postponement for thirty days, both the Carolina Coach 
Company and the Atlantic Greyhound Corporation appeared, through their 
representatives and attorneys, before the Commission on the 16th day of June, 
1939, and admitted that the present bus station was inadequate; that it was 
not susceptible of being made adequate, and that a new station or stations 
should be constructed on another or other locations — the Atlantic Greyhound 



Decisions and Adjustments of Complaints 151 

Corporation contending that separate bus stations would afford more satis- 
factory facilities; 

And, Whereas, on June 16th both companies, through their representatives 
and attorneys, contending that if they were required immediately to pur- 
chase a new site that the cost of same would be exorbitant, requested that the 
Commission allow the matter to remain dormant a reasonable time, in order 
that options might be obtained on several sites at reasonable prices, which 
would later be submitted to the Commission; 

And, Whereas, options were obtained on several sites at prices which the 
Commission deemed reasonable, and either of which sites, except one, the 
Commission indicated would be satisfactory to it; 

And, Wheeeas, later the Commission was asked to allow the two companies 
to enter into a contract for the construction, operation and management of 
the station, to which the Commission agreed; 

And, Wheeeas, said contract with plans and specifications have been pre- 
sented by each company to the other, neither of which is satisfactory to the 
other, and the Commission has been advised by each of said companies that 
neither would accede to the demands of the other company; 

And, Wheeeas, ample time has elapsed and negotiations between the com- 
panies have terminated; 

The Commission finds as a fact from the admissions of parties: 

First. That the present bus station at Raleigh is grossly inadequate for the 
public needs. 

Second. That the present location is not susceptible of being made adequate. 

Third. That a new location must be obtained and a new station constructed 
to provide adequate facilities for the City of Raleigh. 

The Commission further finds as a fact that a union bus station in Raleigh 
is required by public convenience and necessity, which could not be served 
by separate bus stations, and that such union bus station should be of the 
following type and character: 

1. That the exterior of the bus station shall be architecturally in keeping 
with other buildings in the same vicinity in the City of Raleigh, in which it 
is to be located, without ornate or costly decorative construction. 

2. That the interior of the station building shall contain a minimum of 
seven thousand square feet floor area, to be arranged substantially as follows: 

(a) Two waiting rooms for the races with the minimum seating capac- 
ity of three hundred, so proportioned between the two rooms as to ade- 
quately provide seats for the races in accordance with the station experience. 

(b) One adequate baggage room. 

(c) Separate adequate toilet facilities for the races and sexes. 

(d) One ticket office so located within the station that white and colored 
passengers will be served from different windows and will not come in 
contact in the purchase of tickets. 

(e) Separate exits for the white passenger waiting room and the colored 
passenger waiting room to the bus platforms. 

(f) Separate entrances for white and colored passengers. 

(g) Ample lunch room facilities for both white and colored, so located 
within the station that the two races shall be served at separate places and 
not come in contact with each other. 



152 1!^. C. Utilities Commission 

(h) Ample walkways around the station for passengers getting off and 
on buses under cover. 

(i) Paved driveways on each side of the station at least 20 feet wide, and 
parking places at the rear or around the bus station sufficient to accom- 
modate, without crowding, 18 buses at the same time. 

(j) Such other additions and enlargements as the two companies may 
desire and agree upon. 

(k) No sign or emblem shall be displayed on the exterior of the bus 
station other than that of UNION BUS STATION. 

3. That such station, when completed, shall be operated, managed and con- 
ducted in accordance with rules and regulations of this Commission now in 
effect, or which may hereafter be made. 

NOTICE IS HEREBY GIVEN TO THE CAROLINA COACH COMPANY 
AND THE ATLANTIC GREYHOUND CORPORATION: 

That unless said companies shall procure a new location for a union bus 
station within the corporate limits of the City of Raleigh, satisfactory to the 
Commission, and in a zone approved by the Mayor and Commissioners of the 
City of Raleigh, and agree to erect thereon a union bus station of the size 
and capacity hereinbefore set out, to be completed and ready for use not later 
than December 15, 1940, and further agree to construct the same in ac- 
cordance with plans and specifications submitted to and approved by this 
Commission, and further agree to operate the same in accordance with the 
rules and regulations of this Commission now in effect, or which may here- 
after be made, and so notify this Commission on or before 12:00 o'clock 
Noon, June 17th, 1940, that an agreement has been consummated, 

The Commission will on the 18th day of June, 1940, make and enter such 
order as may be necessary and proper for the purpose of carrying into effect 
the findings herein made, so as to provide for the erection at Raleigh, North 
Carolina, of an adequate union bus station. 

This the 27th day of May, 1940. 

( S ) Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1591. 

UTILITIES COMMISSIONER v. ATLANTIC GREYHOUND CORPORA- 
TION AND CAROLINA COACH COMPANY— INADEQUACY OP BUS 
TERMINAL AT RALEIGH. 

Order 
This Matter coming on to be considered upon the application of Carolina 
Coach Company and Atlantic Greyhound Corporation, and said companies 
having presented to the undersigned "Raleigh Union Station Agreement" 
dated June 27, 1940, and "Raleigh Union Station Supplemental Agreement" 
dated October 5, 1940, for the construction, maintenance and operation of a 
union bus station in the city of Raleigh, and this Commission having been 
requested to consider and approve said contracts as the contract for the con- 
struction, maintenance and operation of said union station, and the said 
contracts having been examined and it being found as a fact that said con- 
tracts will promote harmony among the operators and efficiency of service to 
the traveling public using the union bus station in the city of Raleigh, and it 



Decisions and Adjustments of Complaints 153 

further being found as a fact that said contracts constitute a full and complete 
compliance with the duties of said operating companies to the traveling 
public as contemplated in this proceeding: 

Now, therefore, under and by virtue of the statute, the said contracts 
hereinbefore specified are approved as the contract for the construction, main- 
tenance and operation of a Raleigh union bus station, and this proceeding is 
thereupon discontinued and the said operators are discharged from further 
appearance herein in connection with the original citation issued in this 
docket. 

This the 26th day of October, 1940. 

Stanley Winrorne, 
Utilities Commissioner 
of North Carolina. 
Docket No. 1591. 

DESIGNATION OF WASHINGTON, NORTH CAROLINA AS POINT FOR 

UNION BUS STATION. 

Order 

Whereas the motor vehicle business for the transportation of passengers at 
Washington, North Carolina has increased to the point where it is necessary 
to have an adequate building for the purpose of a union bus station, and the 
carriers at that point have for several years had one common place of call 
and departure and are now of the opinion that business has increased to 
where additional and more commodious facilities are desirous, it is 

Ordered that the said Town of Washington, North Carolina be designated 
as a point for a union bus station, and that the specifications and maps for 
such a station filed with this Commission with letter dated October 6, 1939 by 
the Norfolk Southern Bus Corporation and previously approved, are hereby 
officially approved and accepted for such a station at that point, and the 
agreement between the carriers for the operation of said station and the 
contract between the carriers and the owner of the site, are hereby approved 
and by this reference made a part of this order. 

This the eleventh day of October, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1013. 

ALTERATION PLANS UNION BUS STATION WILMINGTON, NORTH 
CAROLINA. 

Order 

After further full consideration of the plans as originally drawn of the 
above named station and conference between Mr. R. O. Self, Architect Brown, 
and Mr. McAfee of the Atlantic Greyhound Corporation, Mr. L. A. Love of the 
Queen City Coach Company, it is 

Ordered that a door be cut between the colored waiting room and the white 
waiting room so that the upper half may be opened and used as a ticket 
window for the colored passengers. The object of this window is to eliminate 



154 1ST. C. Utilities Commission 

the necessity of colored passengers going outside of the building in order to 
purchase tickets, and also to eliminate the necessity of their going into the 
white waiting room and restaurant. 

The proper authority will immediately furnish Mr. E. B. Bugg, who is 
deferring the expenses of having the building constructed, with specifications 
for this alteration in order that the work on the building may proceed. 
This the second day of November, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1013. 

NON-RESIDENT OPERATORS, OPERATING CHARTER AND SPECIAL 
TRIPS PROM THEIR HOME STATES TO THE NEW YORK WORLD'S 
FAIR AND THE SAN FRANCISCO WORLD'S FAIR. 

Order 

Whereas many inquiries are being received from prospective carriers and 
operators of buses, brokers, and operators of special and chartered trips from 
many states to the World's Fairs, and in order to save much correspondence 
on the part of all persons concerned, it is hereby 

Ordered that all motor vehicle operators, operating special and chartered 
trips through the State of North Carolina, who have complied with the laws 
of the State of the operators' residence and the conductors of such trips carry 
evidence of such compliance, the courtesy of the Highways of this State will 
be extended to them for passing across this State going to either the New 
York World's Fair or the San Francisco World's Fair, and it is 

Further ordered that any and all peace and revenue officers, including the 
Highway Patrol, are hereby requested to extend such courtesy to all such 
guests passing through our jurisdiction, and it is 

Further ordered that the above provisions do not apply to such carriers 
picking up passengers for such trips within this State, except as they may be 
specifically authorized by order of the Commissioner. 

This the twenty-ninth day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 

R. 0. Self, Chief Clerk and Director of Motor Vehicle Transportation, 

Docket No. 1 

JOINT APPLICATION OF ABERDEEN AND ROCKFISH RAILROAD 
COMPANY AND CAPE FEAR RAILWAYS, INCORPORATED, OF ABER- 
DEEN AND FORT BRAGG, RESPECTIVELY. 

Emergency Order 
This cause arises upon the application of the above named railroad 
carriers. The Aberdeen and Rockfish Railroad Company of Aberdeen, North 
Carolina, is a North Carolina Corporation and operates a common carrier 
railroad between Fayetteville and Aberdeen. The Cape Fear Railways, 
Incorporated, of Fort Bragg, North Carolina, is a North Carolina Corpora- 



Decisions and Adjustments of Complaints 155 

tion, and owns the rail line between Skibo and Port Bragg Military Reserva- 
tion. Both roads are now largely engaged in serving the United States 
Military Fort at Fort Bragg, and the National Defense Program has increased 
the business of the railroads to the extent that they find it necessary to 
supplement their rail operations with motor vehicle bus operations, and the 
military necessity at the present time is such that an emergency is created, 
and for that reason, the Commission is expediting the handling of this 
application to the extent of giving the applicant a temporary one hundred 
twenty day (120) certificate so as to permit the applicant in this case to 
contract with motor vehicle bus carriers for the necessary equipment to 
supplement their services pending hearing and other preparations that may 
be expedient. 

The applicants in this case are both interstate carriers by rail, and there- 
fore must of necessity negotitiate with motor vehicle carriers who have 
interstate authority or be delayed by the necessity of making application to 
the Interstate Commerce Commission, and be delayed by the necessity for 
notice which accompanies a formal hearing, therefore, it is 

Ordered, that authority be given to the applicants in this case to contract 
with certificated carriers to furnish a supplemental motor vehicle bus service 
between Aberdeen and Port Bragg for a period of one hundred twenty (120) 
days from the date of this Certificate, and that formal hearing will be given 
during the interim at the request of the applicant to either extend the 
temporary authority or to make this authority permanent, or to extend any 
contract which the petitioners in this case are authorized to make with any 
other carrier now legally operating within the vicinity of the Reservation; 
otherwise this authority will automatically expire, and it is 

Further ordered, that this temporary certificate does not carry authority 
with it to purchase equipment for the purposes of rendering this service. 

This the twenty-ninth day of October, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 2098. 

APPALACHIAN TRAIL BUS LINE (CLARENCE L. DAVIS). PURCHASE 
OF OPERATING RIGHTS OF DAYTON BROTHERS BUS LINE, INC., 
FRANCHISE- CERTIFICATE, No. 419, DOCKET No. 1523. (See Dayton 
Brothers Bus Line, Inc. Docket No. 1523.) 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR CARRIER FROM 
RALEIGH TO FAYETTEVILLE VIA FIVE POINTS, ANGIER AND 
LILLINGTON (HIGHWAYS U. S. 15a; N. C. No. 55, AND N. C. No. 210). 

Order 
This cause came before the Commission for hearing and was heard before 
the undersigned Commissioner, sitting alone, in the Hearing Room of the 
Utilities Commission, Raleigh, North Carolina, on February 10, 1939. 



156 N. C. Utilities Commission 

The petitioner, the Atlantic Greyhound Corportion, was represented by 

Hon. I. M. Bailey and Hon. J. C. B. Ehringhaus, both of Raleigh. 

The protestant, the Carolina Coach Company, was represented by Hon. 

Willis Smith, of Raleigh. 

On December, 1936, the Atlantic Greyhound Corporation purchased from the 
East Coast Stages franchise rights on U. S. Highway 50 through Henderson 
to Raleigh and from Raleigh to the South Carolina line via Fayetteville over 
the same highways involved in this case. 

On the 26 day of July, 1933, the East Coast Stages applied to the Corpora- 
tion Commission, the predecessor of the Utilities Commission, for interstate 
rights from Raleigh to the South Carolina line via Fayetteville over the same 
highways as involved in this case. At that time the Carolina Coach Company 
held an intrastate franchise from Raleigh to Fayetteville and it was agreed 
that the East Coast Stages, if granted interstate rights from Raleigh to the 
South Carolina line, should have no intrastate privileges between Raleigh 
and Fayetteville or to any points between Raleigh and Fayetteville. It, there- 
fore, followed that when the applicant, the Atlantic Greyhound Corporation, 
succeeded to the rights of the East Coast Stages that its operations were 
restricted in the same manner as were the East Coast Stages. 

In the instant case, the Atlantic Greyhound Corporation is seeking to have 
the intrastate restrictions between Raleigh and Fayetteville and intermediate 
points removed. 

In support of its contention that said restrictions should be removed, the 
Atlantic Greyhound offered evidence tending to show that at the present time 
the restrictions were causing considerable inconvenience and annoyance to 
the traveling public, in that passengers originating at points in North Carolina 
destined for Fayetteville, or for points between Raleigh and Fayetteville, 
were required to change from the Atlantic Greyhound buses at Raleigh to 
the Carolina Coach Company; and likewise passengers originating between 
the South Carolina line and Fayetteville were required to leave the Atlantic 
Greyhound buses at Fayetteville and change to the Carolina Coach Company, 
even though in both instances the Atlantic Greyhound buses proceeded to the 
point of destination of the passengers. 

The protestant, the Carolina Coach Company, opposed the removal of the 
restrictions and offered evidence tending to show that it had many schedules 
between Raleigh and Fayetteville; that the revenue received now between 
said points was barely sufficient to justify the schedules operated and that 
the inconvenience to the traveling public, according to the applicant's con- 
tention, was magnified in that if the restrictions were removed, since some 
of the Greyhound schedules did not continue by the same bus all the way 
through, a change from one bus to another at Raleigh would then be required. 

Upon a consideration of the whole case, the Commission is of the opinion 
that the restrictions between Raleigh and Fayetteville should not be removed, 
for the reason that this was originally an operation of the Carolina Coach 
Company for which it paid a considerable amount for the franchise; and for 
the further reason that the Carolina Coach Company provides ample service 
for people in Raleigh who desire to go to Fayetteville, and people in Fayette- 
ville who desire to go to Raleigh; and for the still further reason that there 
is no inconvenience to the public traveling between Fayetteville and Raleigh, 
as exist between persons traveling from Fayetteville to points north of Ra- 



Decisions and Adjustments of Complaints 157 

leigh and persons traveling north of Raleigh to Payetteville, who may have 
to change buses in Raleigh or Fayetteville. 

The Commission is of the opinion, however, and so finds, that the existing 
restrictions which require persons traveling from points in North Carolina 
north of Raleigh to Fayetteville and to points between Raleigh and Fayette- 
ville; and for persons traveling from points within North Carolina between 
the South Carolina line and Fayetteville to Raleigh and points between 
Fayetteville and Raleigh, unduly inconveniences the traveling public and 
should be removed. 

There are two towns between Raleigh and Fayetteville to which restrictions 
have heretofore applied, which deserve consideration. The Atlantic Grey- 
hound Corporation and the Carolina Coach Company do not traverse the 
same highways all the way between Raleigh and Fayetteville. The Atlantic 
Greyhound operates from Raleigh south over Highway 15a to the intersec- 
tion of Highway 55; thence over Highway 55 to Angier; thence over High- 
way 210 to Lillington; thence over Highway 15a to Fayetteville. The Carolina 
Coach Company operates over Highway 15a to its intersection with Highway 
210 near the town of Lillington; thence into the town of Lillington over 
Highway 210; thence back from Lillington over Highway 210 to the inter- 
section of 15a; thence to Dunn over Highway 421; thence from Dunn over 
Highway 301 to Fayetteville. 

By agreement at the hearing, since the Carolina Coach Company did not 
pass through Angier, all restrictions were removed as to the Atlantic Grey- 
hound Corporation serving Angier and said service has already begun. 

Upon a consideration of the record, in reference to Lillington and the way 
it is now served, the Commission is of the opinion that all restrictions on 
the Atlantic Greyhound Corporation to serve Lillington should be removed. 

Wherefore it is Ordered, first : That the restrictions upon the Atlantic Grey- 
hound Corporation denying it the right to carry passengers originating at 
points within North Carolina, north of Raleigh destined to Fayetteville and 
other points between Raleigh and Fayetteville, be and the same are hereby 
removed. 

Second: That the restrictions on the Atlantic Greyhound Corporation, 
denying it the right to carry passengers originating in North Carolina between 
the South Carolina line and Fayetteville destined to Raleigh, or points be- 
tween Raleigh and Fayetteville, be and the same are hereby removed. 

Third: That the restrictions on the Atlantic Greyhound Corporation deny- 
ing the right to carry passengers originating at Fayetteville, or points between 
Fayetteville and Raleigh, destined to points in North Carolina north of 
Raleigh, be and the same are hereby removed. 

Fourth: That the restrictions denying the Atlantic Greyhound Corporation 
the right to carry passengers originating in Raleigh, or points between Ra- 
leigh and Fayetteville, destined to points in North Carolina south of Fayette- 
ville, be and the same are hereby removed. 

Fifth: That all restrictions heretofore imposed upon the Atlantic Grey- 
hound Corporation as to the town of Angier, be and the same are hereby 
removed. 

Sixth: That all restrictions heretofore imposed upon the Atlantic Grey- 
hound Corporation, denying it the right to serve the town of Lillington, be 
and the same are hereby removed. 



158 N". C. Utilities Commission 

Seventh: That the application of the Atlantic Greyhound Corporation to 
remove the restrictions as to passengers originating at Raleigh, destined for 
Fayetteville, and as to passengers originating at Fayetteville, destined for 
Raleigh, is denied. 

Eighth: That all other restrictions on the Atlantic Greyhound Corporation, 
except those herein specifically removed, are continued. 

This the 9th day of November, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1191. 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR AU- 
THORITY TO OPERATE MOTOR BUSES IN THE TRANSPORTATION 
OF PASSENGERS BETWEEN THE TOWNS OF WARSAW AND TIN 
CITY VIA MAGNOLIA, ROSE HILL, TEACHEY AND WALLACE. 

Order 

This cause arises upon the application of the Atlantic Greyhound Cor- 
poration to operate over the County Roads between Warsaw and Wallace and 
between Wallace and Tin City over Highway No. 41. The applicant is already 
in operation between Warsaw and Tin City over Highway 117 via Kenans- 
ville and the proposed operation is parallel with the Atlantic Coast Line 
Railroad where several small towns have been built up, and the people desire 
a bus service because of its frequency as compared with the railroad service. 

This case was heard by the Commission on February 10 at 10:00 o'clock a.m. 
and the petitioner was represented by Attorney I. M. Bailey, of Raleigh, 
North Carolina. The application was opposed by the Atlantic Coast Line 
Railroad through its Attorney, R. B. Gwathmey of Wilmington, North Caro- 
lina. Since this application was heard, a similar application has been granted 
by the Interstate Commerce Commission for interstate operation. The 
petition of the applicant was supported by the citizens from the towns of 
Magnolia, Rose Hill and Teachey and by business interests in both Wallace 
and Warsaw. 

The petitioner presented evidence to show that it can operate morning and 
evening schedules by each route so as to give the people in both communities 
good service, and the protestants did not show sufficient reason why the 
application should not be granted. The evidence presented was more than 
ample to prove convenience and necessity, therefore it is 

Ordered that the petition be granted, to become effective at the pleasure of 
the applicant within thirty (30) days from the date of this Order and it is 

Further ordered that the franchise certificate No. 429 be amended upon 
presentation to include the additional operation granted herein. 

This the 22d day of June, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1433. 



Decisions and Adjustments of Complaints 159 

PURCHASE BY ATLANTIC GREYHOUND CORPORATION OF CERTIF- 
ICATES AND OTHER ASSETS OF INDEPENDENCE BUS CORPORA- 
TION AND E. 0. WOODIE TRANSPORTATION COMPANY, CERTIF- 
ICATES NOS. 451 AND 378, RESPECTIVELY. 

Order 

This matter comes on before the Commission upon application dated the 
2d day of November, 1938, filed by Atlantic Greyhound Corporation, asking 
that this Commission approve the sale and transfer to Atlantic Greyhound 
Corporation of Certificate No. 451 now held by Independence Bus Corporation 
and Certificate No. 378 now held by E. 0. Woodie Transportation Company. 

This matter has been pending before the Commission upon said petition 
since the 8th day of November, 1938, and action thereon has been deferred 
pending hearing before and action by the Interstate Commerce Commission, 
the petitioner herein being engaged in the operation interstate of motor 
vehicles for the transportation of passengers. This Commission is now 
informed that the Interstate Commerce Commission has issued its order 
approving the purchase by the Atlantic Greyhound Corporation of the inter- 
state rights of both Independence Bus Corporation and E. 0. "Woodie Trans- 
portation Company, and the Commission is further advised that Atlantic 
Greyhound Corporation has made final arrangement for the completion of the 
purchase of said certificates and the other assets of said two corporations, 
to wit, Independence Bus Corporation and E. 0. Woodie Transportation 
Company. 

It appears to the best interests of the traveling public that the intrastate 
rights, including the certificates, be purchased by the Atlantic Greyhound 
Corporation in accordance with its contract with the two corporations and 
that the franchise certificates be transferred. 

This Commission, in accordance with its rules and regulations, will cancel 
Certificates Nos. 451 and 378 and will amend the certificate held by the 
Atlantic Greyhound Corporation so as to include the rights covered by said 
two certificates. 

Wherefore, it is ordered that the sale and transfer to the Atlantic Grey- 
hound Corporation of Certifiate No. 451 and Certificate No. 378 be, and the 
same hereby is approved. 

It is further ordered that said two certificates be surrendered to this 
Commission and that the certificate of Atlantic Greyhound Corporation be 
presented to the Commission for amendment in accordance with its rules, 
showing the transfer of said two certificates. 

It is further ordered that the transfer by said two corporations of all 
assets to Atlantic Greyhound Corporation be, and the same hereby is 
approved. 

This the 22d day of April, 1939. 

Stanley Winborne, 

Commissioner. 

Attest: 

R. 0. Self, Chief Clerk. 

Docket No. 1459. 



160 "N. C. Utilities Commission 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
FROM RALEIGH TO LOUISBURG VIA U. S. No. 1 TO JUNCTION WITH 
N. C. No. 59; THENCE N. C. 59 TO LOUISBURG AND RETURN. DOCKET 
NO. 1572. 

APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
RALEIGH TO WARRENTON VIA N. C. 59; SERVING LOUISBURG; 
WARRENTON TO CONWAY VIA U. S. 158, SERVING MACON, VAUHAN, 
LITTLETON, ROANOKE RAPIDS, WELDON, GARYSBURG, AND 
JACKSON. DOCKET NO. 1721. 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
FROM LOUISBURG TO NORLINA VIA N. C. 59 AND U. S. 158. DOCKET 
No. 1762. 

Order 
This cause arises upon the above applications which were set for hearing 
and heard at 10:00 o'clock a.m., January 16, 1940 in the office of the Com- 
missioner in Raleigh. 

Certificates were presented to the effect that notices of hearing were 
carried in the press of the state in accordance with law. 

Announcement was made that Commissioner Winborne was providentially 
hindered from being present at the hearing and that if the applicants and 
respondents did not object, the hearing would be held by the Chief Clerk of 
the Commission. This was agreed to by all parties present. 

The applications of the Atlantic Greyhound Corporation in Dockets Nos. 
1762, 1572 and 1797 covered the routes which were applied for by the 
Carolina Coach Company in Docket No. 1721. 

The Carolina Coach Company was represented by Attorneys Willis Smith, 
Raleigh, J. W. Crew, Jr., Roanoke Rapids, D. C. Barnes, Murfreesboro, and 
W. L. Lumpkin, Louisburg. The Atlantic Greyhound Corporation was repre- 
sented by Attorneys I. M. Bailey, Raleigh, and J. C. B. Ehringhaus, Raleigh, 
Attorneys Wm. H. Delaney, Norfolk, and Murray Allen of Raleigh, requested 
and were permitted, to appear for the protestants, representing the Receivers 
of the Seaboard Air Line Railway Company. 

The petitioners announced through their attorneys that they were ready 
for hearing and Mr. Bailey, representing the Atlantic Greyhound Corpora- 
tion, called attention to application in Dockets Nos. 1572, 1721 and 1763, and 
stated that he wished further to call attention to the Atlantic Greyhound 
Corporation's application in Docket No. 1797 for franchise to operate from 
Warrenton through Littleton to Murfreesboro and the Virginia State Line, 
north of Como, and presented, with reference to these four dockets, an agree- 
ment which had been entered into between the Carolina Coach Company and 
the Atlantic Greyhound Corporation, to the effect that the Atlantic Greyhound 
Corporation had withdrawn its applications in Dockets Nos. 1572, 1762 and 
1797, with the exception of that part of its application in Docket No. 1762 
which applied for franchise rights over Highway No. 158 between Norlina 



Decisions and Adjustments of Complaints 161 

and Warrenton, and that this had been agreed to by the Carolina Coach 
Company as was evidenced by letter writing as well as being admitted by 
the Carolina Coach Company through its attorneys. 

Attorney Smith representing the Carolina Coach Company, stated that these 
stipulations had been entered into provided the Carolina Coach Company 
would, if and when the franchise certificate was granted under Docket No. 
1721, withdraw from Highway No. 15a and 15 between Raleigh and the 
Virginia State Line via Creedmore, Oxford and Bullock and operate its north- 
south business over the line proposed in Docket No. 1721, leaving route 15a 
and 15 to the exclusive use of the Atlantic Greyhound Corporation. He 
further stated that of course this abandonment of routes 15a and 15 could not 
be made until the permission could be obtained from the Interstate Commerce 
Commission. 

The Carolina Coach Company and the Seashore Transportation Company 
had filed several other applications in the same general territory as is affected 
by these applications, but an agreement was presented by which the Carolina 
Coach Company agreed to withdraw Dockets Nos. 1432, 1747 and 1748 and 
the Seashore Transportation Company agreed to withdraw Dockets Nos. 1135, 
1265, 1539, 1760 and 1533, and further agreed with reference to the Seashore 
Transportation Company continuing operation over Highway Nos. 58 and 95 
between Wilson and Rocky Mount without prejudice to either party, and also 
agreed on Dockets Nos. 1527 and 1746 between New Bern and Kinston, and 
Kinston and points west on Highway 55. These cases were not set for hearing 
The only significant thing about this agreement between the Carolina Coach 
Company and the Seashore Transportation Company in connection with this 
hearing is that these applications which affected the general territory con- 
cerned in the cases heard at this time, was the withdrawal of all applications 
in which the Carolina Coach Company and the Seashore Transportation 
Company were asking for the same routes. 

The agreements referred to above eliminated all of the applications except 
Docket No. 1731 — the application of the Carolina Coach Company to operate 
from Raleigh to Murfreesboro via Louisburg, Engleside, Warrenton, Little- 
ton, Weldon, Garysburg, Jackson and Conway, and that portion of Docket 
No. 1762, the application of the Atlantic Greyhound Corporation for oper- 
ating rights between Norlina and Warrenton over Highway No. 158. 

The applicants in Docket No. 1721, the Carolina Coach Company, presented 
witnesses to show that there is no present operation by any public service 
company over the highways over which it is requesting franchise, and 
presented evidence from witnesses along the line to show that such a service 
as the applicant in this case offers is much needed. It presented many wit- 
nesses to show that this service is needed at Louisburg, Warrenton, Macon, 
Vaughan, Littleton, Fosburg, Summit, Thelma, Weldon, Garysburg, Jackson 
and Murfreesboro, and at other smaller points along the line proposed. None 
of these points now have bus service, except Louisburg and that has limited 
service to Franklinton. Witnesses from these points appeared very enthusi- 
astic about the prospects of a service on which they could leave home 
mornings, reach Raleigh or Norfolk, and spend a few hours and return 
home at night. This section, according to the evidence, has never had such a 
service, and is what they have hoped for for many years. 

ll 



162 K. C. Utilities Commission 

The petitioner presented as witnesses, Mr. W. G. Humphrey, Traffic Man- 
ager of the Carolina Coach Company and showed by him the kind of service 
it desired to inaugurate. It also presented Mr. T. W. M. Long, Representative 
in the General Assembly from Roanoke Rapids, who stated the service was 
needed. Also Mr. J. R. Wollett, as lumberman of Littleton, who stated that the 
service was needed and the proposed schedules by the Carolina Coach Com- 
pany would meet the convenience of the local people going to Warrenton, the 
county seat. It presented Mr. W. T. Polk, Mayor of the Town of Warrenton, 
who stated that the service was needed; Mr. M. S. Davis, a Civil Engineer of 
Louisburg, also stated that the service was needed. It presented Mayor W. C. 
Webb of Louisburg, who stated that the service was needed. 

The Attorneys for the Receivers of the Seaboard Air Line Railway Com- 
pany protested the application of the Carolina Coach Company and presented 
evidence to show that they had railroad service at all the points on the pro- 
posed line except Louisburg, Inez, Warrenton, Jackson, Murfreesboro and 
some smaller places on the line, and offered considerable evidence that this 
railroad company is endeavoring to give the best service possible to the 
patrons along its line. They presented Witness Ward, Division Passenger 
Agent of the Seaboard Air Line Railway, who testified to the schedules of the 
company through the territory affected by the application, and showed that 
they had three trains each way daily between Portsmouth and Norlina. One 
leaving Portsmouth at 9:30 a.m., reaching Norlina at 1:30 p.m., and making 
connection with a train out of Norlina at 2:50 p.m., reaching Raleigh at 4:45 
p.m.; one leaving Portsmouth at 4:45 p.m. which makes close connection at 
Norlina, reaching Raleigh at 9:05 p.m.; one leaving Portsmouth at 9:05 p.m., 
making close connection at Norlina, reaching Raliegh at 3:20 a.m. On the 
return trips, this evidence showed that a train leaves Raleigh at 6:25 a.m. 
making connection at Norlina reaching Portsmouth at 10:45 a.m.; one leaving 
Raleigh at 12:45 a.m. reaching Portsmouth at 8:10 a.m., and one leaving 2:15 
a.m. reaching Portsmouth at 8:10 a.m. It presented estimate of revenue and 
out-of-pocket cost of trains Nos. 15, 16, 17, 18, 13 and 14 between Portsmouth 
and Norlina for the 12 months ending November 30, 1939 which showed a 
deficit of $18,000, $787, $14,183, $354, and $33,324, respectively. 

If the merits of this application would be considered solely on a basis of 
whether or not the operation of the bus company would greatly effect the rail- 
road revenues, the evidence of protestant would be significant, but applicant 
does now and has for many years operated over routes between the extreme 
termini proposed if this application is granted, and if the bus company takes 
business from the railroad, it will be by extending to the public a more con- 
venient daytime service. The question of interstate travel is not before this 
Commission, but intrastate service over a route where many places do not now 
enjoy any service of any kind in close proximity and such places are entitled 
to preferred consideration by a regulatory body, when the weight of evidence 
so preponderantly favors the petitioner as in this case, and from which it 
appears that the granting of the application of the Carolina Coach Company 
will enhance the public interest. 

No objection was presented to the proposal of the Atlantic Greyhound 
Corporation to operate from Norlina to Warrenton. The evidence showed that 



Decisions and Adjustments of Complaints 163 

persons in Warrenton or Norlina now must travel by taxicab if and when 
taxicab service can be obtained, and passengers in Norlina have to phone to 
Warrenton for a taxicab at any time of night that passengers may arrive there 
by train, therefore it is 

Recommended that the application of the Carolina Coach Company in 
Docket No. 1721 be granted and that the application of the Atlantic Grey- 
hound Corporation in Docket No. 1762 be granted in so far as it relates to 
operation between Norlina and Warrenton, and it is 

Further recommended that the Atlantic Greyhound Corporation and the 
Carolina Coach Company present their certificates to this Commission for 
amendment in accordance with the recommendations herein, and it is 

Further recommended that Dockets Nos. 1572 and 1797 be dismissed and 
closed. 

This the sixteenth day of February, 1940. 

R. O. Self. 
Examiner. 

I hereby adopt the above recommendations and Order that same become 
effective as of February 19, 1940. 

Stanley Winborne, 

Commissioner. 
Dockets Nos. 1572, 1721, 1762 and 1797. 

IN THE MATTER OF REVISION OF ATLANTIC GREYHOUND COR- 
PORATION BUS FARES. 

Order 

Appearances: I. M. Bailey, Attorney, Raleigh, N. C, for Applicant. 

On March 20, 1939, the Atlantic Greyhound Corporation, applicant in this 
proceeding, filed with this Commission Local Passenger Tariffs Nos. 76, 77, 
78, and 79, bearing N.C.U.C. Nos. 1, 2, 3, and 4, respectively, scheduled to 
become effective on April 17, 1939, and requested that the intrastate fares pub- 
lished therein be approved. 

The fares proposed and published in these tariffs are based on a uniform 
mileage scale which, it is stated, is used throughout the entire Southeast. 
This scale begins with 5 cents for the first mile and grades down to 1.15 cents 
per mile for a 600-mile haul. The use of this mileage scale resulted in the 
publication of fares which in the majority of cases are lower than the present 
fares. In fifty instances, however, where the fare does not exceed 70 cents, the 
scale resulted in increases, but in no case are the increases proposed more than 
5 cents. The application was heard by the Commissioner on April 14, 1939, but 
no one appeared in opposition to the increases proposed. Section 16, Chapter 
134 of the Public Laws of 1933, authorizes applicant to reduce fares whenever 
it wishes and for that reason the reductions were not before the Commissioner. 

Applicant will be authorized to put into effect on April 17, 1939, the fares 
proposed. 



164 ST. C. Utilities Commission 

It is therefore ordered, That the application of the Atlantic Greyhound 
Corporation to revise its fares effective April 17, 1939, be, and the same is 
hereby, approved. 

This 15th day of April, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1573. 

RUSSELL C. BAGGETTE. APPLICATION FOR FRANCHISE CERTIF- 
ICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM HAT- 
TERAS TO MANTEO. DOCKET No. 1384. (See Hatteras-Manteo Bus Line. 
Docket No. 1390.) 

APPLICATION OF BENNETTS TRANSPORTATION COMPANY FOR RE- 
STRICTED FRANCHISE TO TRANSPORT BEER AND BREWERY 
PRODUCTS, INCLUDING CONTAINERS, FROM MONROE, NORTH 
CAROLINA TO VARIOUS TOWNS AND CITIES INTRASTATE. 

Order 

This cause arises upon the application of Bennetts Transportation Com- 
pany of Norfolk, Virginia to transport beer and brewery products, including 
containers in intrastate service between Monroe, North Carolina and Winston- 
Salem, Lenoir, Lumberton, Fayetteville, Rockingham, Durham, Greensboro, 
Salisbury, Gastonia, Wilmington, Charlotte, Rocky Mount and Raleigh, which 
was filed with this office on March 22, 1940, set for hearing on April 9th at 
11:00 o'clock a.m. in the office of the Utilities Commissioner, duly advertised, 
and heard at the date and place advertised. 

Applicant was represented by attorney I. M. Bailey of Raleigh, N. C. The 
Motor Transit Company appeared as protestant but after hearing the ex- 
planation of the application by counsel, presented no testimony. Mr. Arthur 
Bennett, owner of the application was presented as a witness, and showed 
that he was able, fit and willing to offer the service and that he had arrange- 
ments with breweries and beer merchants, to which the service which he 
proposed is necessary to meet the public convenience, therefore, it is 

Ordered, that the petition be granted, and that a restricted certificate be 
issued to include the things applied for, when the law has been complied with 
by filing equipment specifications and insurance. 

This the eleventh day of April, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1944. 



Decisions and Adjustments of Complaints 165 

APPLICATION OF BLIZARD MOTOR EXPRESS, INC., FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER OF 
FREIGHT FROM THE N. C.-VA. STATE LINE ON HIGHWAY NO. 89 TO 
MT. AIRY. FROM MT. AIRY VIA U. S. 601 TO INTERSECTION OF 
U. S. 601 WITH N. C. 268, THENCE OVER N. C. 268 TO ELKIN, THENCE 
OVER U. S. NO. 21 TO CHARLOTTE AND RETURN. 

Order 

Whereas Order was issued after hearing on the 29th day of December, 
1939 in Dockets Nos. 1495, S. & E. Trucking Company and No. 1577, Lowther 
Trucking Company, and No. 1586, Blizard Motor Express, which disposed of 
applications between Mount Airy and Charlotte and intervening points, but 
at that time the fact that Blizard Motor Express in Docket No. 1586 had 
applied to operate over N. C. Highway No. 52 from Mount Airy to the N. C.-Va. 
State Line, a distance of five miles and over North Carolina Highway No. 89 
and Virginia Highway No. 96 from the N. C.-Va. State Line to Mount Airy, a 
distance of 22 miles and no consideration was given to that party of this 
application, it is now thought that the applicant should not be deprived of a 
final disposition of that part of his application by the Commission. Since no 
protest was filed at the hearing and very little representation was made by 
the applicant in connection with the case and since applicant has interstate 
rights over these highways to points in Virginia, it is thought that it should 
be given intrastate rights to carry whatever may be presented in connection 
with his interstate rights, therefore, it is 

Recommended, that that part of the application in Docket No. 1586 which 
applies to operation over Highways 52 and 86 north and northwest of Mount 
Airy to the North Carolina-Virginia State Line be granted and that the 
Certificate now held by Blizard Motor Express, Incorporated, be amended upon 
presentation to include these rights. 

This the 20th day of February, 1940. 

R. 0. Sele, 
Examiner. 

I hereby adopt the above recommendations and Order that same become 
effective immediately. 

Stanley Winborne, 

Commissioner. 
This the twenty-third day of February. 1940. 
Docket No. 1586. 



166 N". C. Utilities Commission 

APPLICATION OF BLUE BIRD TAXIS COMPANY OP ASHEVILLE, N. C, 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM WALL ST., OTTIS ST., PATTON AVE., PACK SQUARE 
TO BILTMORE AVE. TO FOREST HILL DR. TO WARWICK RD. TO 
KENILWORTH RD. TO JUNC. OF NO. 70 TO JUNC. OF OLD HAW 
CREEK RD. TO JUNC. OF GRASSY BRANCH RD. TO TOWN OF RICE- 
VILLE. 

APPLICATION OF BLUE BIRD TAXIS COMPANY OF ASHEVILLE, N. C, 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM WALL ST., OTTIS ST., PATTON AVE., PACK SQUARE, 
S. MARKET ST., COLLEGE ST., POPLAR ST., JUNC. U. S. NO. 70 TO 
U. S. VETERANS' HOSPITAL, OTEEN — RETURNING OVER SAME 
ROUTE. 

Order 

This Cause arises upon the petitions of the Blue Bird Taxis Company in 
Dockets Nos. 1209 and 1210 as outlined above, which were consolidated by- 
consent and heard jointly, as both involved operations over much of the same 
highways. 

The petitions were set for hearing at 10:00 a.m. on October 12, 1938, in the 
office of the Commission in Raleigh; advertised as required by law; and 
notices were served upon other carriers operating over and paralleling some 
of the highways affected in this application. 

Hearing was held as advertised and Mr. R. E. Finch, Attorney of Black 
Mountain, N. C, represented the petitioner. The Oteen Bus Line, represented 
by Mr. George Pennell, Attorney of Asheville, N. C, and the Queen City 
Coach Company, represented by Mr. L. P. McLendon, of Greensboro, N. C, 
opposed the applications. 

Attorney for the petitioner stated that his clients were not seriously advo- 
cating the granting of Docket No. 1210, because it would duplicate service 
being rendered by the protestants, but were particularly interested in Docket 
No. 1209, which he thought would not be in competition with them. 

It appears from the evidence that practically all of the operation pro- 
posed inside the city limits is served by frequent schedules from one or more 
companies; and that proposed on the outside is served by frequent schedules, 
except that from Junction of No. 70 on the Haw Creek Road with the Grassy 
Branch Road to Riceville; and that over the Haw Creek highway which paral- 
lels No. 70 between Asheville and Oteen. In order to serve this section it 
would be necessary to let the petitioner run over roads from the Junction of 
No. 70 with said Grassy Branch Road into the City of Asheville. Outside the 
city limits to Oteen the proposed route parallels a highway on which there is 
service, and the roads run so close together that passengers desiring to get 
into the city by bus from either road could use the bus line on the other. 
The highway between Pack Square in Asheville and the Government Hos- 
pital at Oteen probably has more service over it than any other piece of high- 
way the same length in the state, and because of this fact it was decided at 
the hearing to have Inspector Bowman look over the situation and report the 
feasibility of an additional operation. Some of the mileage over which this 
franchise is proposed is unpaved and narrow, and it appears in the record 
that the petitioner desires to operate a five-passenger vehicle thereon. The 



Decisions and Adjustments of Complaints 167 

Commission discourages operation of public service vehicles upon unpaved 
and narrow highways and also discourages the use of anything less than 
twelve-passenger vehicles for such service, as vehicles of less than twelve- 
passenger capacity cannot transport enough business to pay for the overhead 
expenses, and unpaved roads are not safe under all weather conditions. In- 
spector Bowman visited the locality and reported, after thorough investiga- 
tion, under date of October 29, 1938. I quote from his report as follows: 
"We observed the paralleling of the proposed route with route or routes 
of other companies and at only one place along the route from Asheville, 
North Carolina, to Oteen, North Carolina, does the proposed route of the 
Blue Bird Taxis Company, Inc., separate itself from that of a franchise 
route or routes, a distance of one-half mile, and at this particular place the 
surrounding territory was observed to be sparsely settled. 
"From Oteen, North Carolina, we began our journey to Riceville, North 
Carolina, a distance of four and one-half miles, running in a northeasterly 
direction from said Oteen. Careful observation was made along this narrow 
winding road with reference to the population, and I am of the opinion 
that no actual revenue would be derived from the operation of a bus line 
to Riceville, North Carolina, because Riceville itself consists of one store 
and three or four homes." 

The foregoing report and investigation of Inspector Bowman confirms the 
opinion of the Commission formed at the time of the hearing from the evidence 
presented, and it is found that the granting of these applications would not 
enhance the convenience of transportation to the public in the vicinity in 
question, but would depreciate the value of the service now being rendered, 
probably to the extent of taking any profit which may exist therefrom and 
with the result of eventual destruction of what is at present a convenient and 
adequate service. Therefore, it is 

Ordered that the petitions otherwise known as Dockets 1209 and 1210 
be and the same are hereby denied and dismissed. 

This the 22nd day of December, 1938. 

Stanley Windorne, 
Utilities Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Dockets Nos. 1209 and 1210. 

BRITTON'S MOTOR EXPRESS, APPLICATION TO OPERATE MOTOR 
VEHICLE FREIGHT LINE BETWEEN BEAUFORT AND WILSON, VIA 
NEW BERN, CLINTON, KINSTON, AND GOLDSBORO. 

Order 

This Matter arises upon the above named application which was set for 
hearing September 27, 1938, at 2:00 p.m. Same was heard on that date. 

It appears that the applicant is a mail carrier and carries mail over this 
line as far west and north as Goldsboro, but it appears that he had an 
opportunity to carry automobile accessories and ice cream from Wilson, but 
since there were operators on all of the highways who held franchises that 
could handle all this business, except probably the ice cream, the carriers 



168 N, C. Utilities Commission 

operating same suggested that they work out a solution with the mail carrier 
during the time of his contract for the mail, and report to this Commission 
for approval. No reports have been made, therefore, it is 

Ordered that the case is hereby dismissed for want of further prosecution. 

This the twenty-first day of July, 1939. 

R. 0. Self, Chief Clerk. 

Docket No. 1407. 

APPLICATION OP R. FRANK BUCKNER T/A BUCKNER TRANSFER 
COMPANY TO PURCHASE FRANCHISE RIGHTS NOW OWNED BY 
W. E. COLE BETWEEN ASHEVILLE AND SPRUCE PINE VIA BURNS- 
VILLE OVER HIGHWAY No. 19. 

Order 
This Cause arises upon the application of R. Frank Buckner t /a Buckner 
Transfer Company to purchase franchise rights now owned by W. E. Cole 
between Asheville and Spruce Pine via Burnsville over Highway No. 19. 
Mr. Cole has owned and operated this part of his line for not quite 60 days 
and now believes that he is not in a position to render the service which 
should be given on this line, and therefore desires to sell same to Buckner 
Transfer Company. 

The Commissioner is familiar with both operators and is of the opinion that 
the granting of this application is in the public interest, therefore, it is 
Ordered that the petition be granted. 
Granted second day of August 1937. 
Issued March 22, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1084. 

APPLICATION OF C. & S. MOTOR EXPRESS FOR FRANCHISE CERTIFI- 
CATE TO OPERATE FROM NORTH WILKESBORO TO ELKIN, VIA 
ROARING RIVER AND RONDA, VIA HIGHWAY No. 268. DOCKET 
No. 316. 

APPLICATION OF NORTH WILKESBORO AND HIGH POINT MOTOR 
EXPRESS FOR FRANCHISE CERTIFICATE TO OPERATE FROM 
NORTH WILKESBORO TO HIGH POINT, N. C, VIA ROARING RIVER, 
RONDA, ELKIN, BOONVILLE, EAST BEND, WINSTON-SALEM, AND 
WALBURG, HIGHWAYS 268, 67, AND 109. DOCKET No. 1549. 

Order 

APPLICATION OF TEXTILE TRUCKERS, INC., FOR FRANCHISE CER- 
TIFICATE TO OPERATE FROM MT. AIRY TO ELKIN VIA U. S. 601, 
THENCE TO STATESVILLE AND CHARLOTTE VIA U. S. No. 21. 
DOCKET No. 1719. 



Decisions and Adjustments of Complaints 169 

APPLICATION OF YOUNT TRANSFER FOR FRANCHISE CERTIFICATE 
TO OPERATE FROM NORTH WILKESBORO TO ELKIN, VIA 268, 
THENCE VIA No. 67 TO WINSTON-SALEM, THENCE VIA U. S. 311 
TO HIGH POINT AND RETURN SAME ROUTE. DOCKET No. 1788. 

Order 

APPLICATION OF HALL HUDGINS TRUCK LINE FOR FRANCHISE 
CERTIFICATE TO OPERATE FROM NORTH WILKESBORO TO HIGH 
POINT VIA HIGHWAY No. 268 TO ELKIN AND Nos. 21 and 67 TO 
WINSTON-SALEM, THENCE OVER U. S. 311 TO HIGH POINT. DOCKET 
No. 1792. 

APPLICATION OF S. & E. TRANSFER COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE FROM ELKIN TO NORTH WILKESBORO OVER 
N. C. 268 VIA RONDA AND ROARING RIVER AND RETURN SAME 
ROUTE. DOCKET No. 1815. 

Order 

APPLICATION OF NORTH WILKESBORO AND GALAX MOTOR EXPRESS 
FOR FRANCHISE CERTIFICATE TO OPERATE FROM NORTH WILKES- 
BORO TO SPARTA VIA N. C. 18, THENCE VIA U. S. 21 TO NORTH 
CAROLINA-VIRGINIA STATE LINE, DESTINATION GALAX, VIRGINIA. 
DOCKET No. 1964. 

APPLICATION OF NORTH WILKESBORO AND GALAX MOTOR EXPRESS 
FOR FRANCHISE CERTIFICATE TO OPERATE FROM NORTH WILKES- 
BORO TO ELKIN VIA N. C. 268, THENCE ELKIN TO NORTH CAROLINA- 
VIRGINIA STATE LINE VIA U. S. 21, AND RETURN SAME ROUTE. 
DOCKET No. 2021. 

Order 
This Cause arises upon the eight applications outlined above, which were 
filed with this office in accordance with the statute, duly set for hearing 
on August 27, 1940, in the office of the Utilities Commission, and advertise- 
ments furnished the applicants to publish in accordance with law. 

Mr. A. A. Cashion, through his attorney, W. H. McElwee, of North Wilkes- 

boro, and Mr. Chas. H. Fredrickson, appeared in opposition to Docket No. 1815. 

At 10:00 o'clock a.m. on August 27th, Docket No. 316 was called for hearing 

and request was made by Attorney Earl C. James of Elkin, that consideration 

of this matter be postponed until Docket No. 1815 was called. 

Thereupon, Docket No. 1549 was called and continued because the appli- 
cant had not paid filing fee. 

Docket No. 1719 was called and at the request of Attorney H. O. Woltz, of 
Mount Airy, was continued with leave to notify and re-open on motion. 

Dockets Nos. 1788 and 1792 were called and No. 1792 was continued with 
leave to re-open upon motion, but Docket No. 1788 was dismissed for the reason 
that the applicant was an interstate operator at the time the application was 
made, but his application has since been dismissed by the Interstate Commerce 
Commission, therefore, the applicant took a voluntary non-suit. Applicants in 
these two dockets were represented by Mr. J. Allie Hayes of North Wilkes- 
boro. Motor Transit Company, represented by Ruark and Ruark, Attorneys, 
of Raleigh, appeared in opposition to these two dockets. 



170 N". C. Utilities Commission 

Docket No. 1815 was called and Attorney Earl C. James stated that his 
client in Docket No. 1815 and the Attorney in Docket No. 316 had agreed 
that they would not oppose the application in Docket No. 2021 if the applicant 
in Docket No. 2021 would agree in writing that he would not sell his franchise 
in case it was obtained at this hearing, until after a period of three years, 
and then not until it had been refused by the applicants in Dockets Nos. 
316 and 1815. 

Docket No. 1964 was continued with leave to re-open upon motion. 

Hearing was held on Docket No. 2021, and evidence of publication in accord- 
ance with law was presented and the applicant presented witnesses to show 
convenience and necessity therefor. Attorney W. H. McElwee of North Wilkes- 
boro represented the applicant, and Attorneys H. O. Woltz of Mount Airy and 
Earl C. James of Elkin, represented the protestants. The protestants withdrew 
objection to Docket No. 2021 as outlined above, and evidence was presented by 
the applicant to show that there existed a need for this service. It was agreed 
that if the contracting parties to the condition named above would file the 
agreement in writing with this Commission, that franchise certificate would be 
granted to the applicant, W. P. Billings, in Docket No. 2021, with the under- 
standing that if and when he desired to dispose of same after a period of 
three years, that he would first offer it to the C. & S. Motor Express, E. P. 
Caudill, owner; A. A. Cashion, president, M. & M. Motor Express; and S. & E. 
Transfer Company (Lowther Trucking Company, lessee and operator), in 
the order named herein, and that the matter would be held in abeyance 
until the agreeing parties filed the agreement in writing with this Com- 
mission. 

That agreement was filed with this Commission on September 18th and is 
now on file and a part of the records of this office, therefore, it is 

Ordered, that the petition be granted as outlined in the application of 
Docket No. 2021, to wit: 

"Application of North Wilkesboro and Galax Motor Express for Franchise 

Certificate to Operate from North Wilkesboro to Elkin via N. C. Highway No. 

268; thence Elkin to the North Carolina-Virginia State Line, via U. S. 

Highway No. 21, and return same route." 
and it is 

Further Ordered, that certificate issue when the applicant has filed speci- 
fications on forms provided by this office for equipment, with adequate insur- 
ance in accordance with Rule 12 of the Rules and Regulations of this Com- 
mission, and it is 

Further Ordered, that certificate when issued shall contain a summary of 
the agreement entered into between carriers referred to herein. 

This twenty-third day of September, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Dockets Nos. 316, 1549, 1719, 1788, 1792, 1815, 1964, 2021. 



Decisions and Adjustments of Complaints 171 

PETITION OF CAPITAL COAST EXPRESS COMPANY FOR TRUCKING 
FRANCHISE TO OPERATE FROM CLINTON OVER HIGHWAY NO. 24 
TO JACKSONVILLE; THENCE OVER U. S. HIGHWAY NO. 17 TO 
POLLOKSVILLE. KENANS VILLE OVER ROUTE NO. 11 TO KINSTON; 
THENCE OVER ROUTE NO. 55 TO JASPER AND ALSO CLINTON VIA 
HIGHWAY NO. 403 TO FAISON. 

Order 

This Cause arises upon the above named application. The applicant in this 
case operated truck lines from Raleigh to New Bern by Goldsboro and 
Kinston, and from Goldsboro to Wilmington over Highway No. 117. 

This case was set for hearing on October 11, 1938, at 11 o'clock in the office 
of the Commission in Raleigh, and was heard after notice had been given to 
all carriers in the vicinity that might be affected by such operation if granted. 

The only opposition present at the hearing was Mr. Merritt, owner of Como 
Motor Express, who operated from Kinston to Wilmington via Richlands and 
Jacksonville. He stated that he had a contract for sale of his line to the 
Thurston Motor Express, and that he would object to the granting of the 
application if it would in any way affect his sale to Mr. Thurston. Mr. 
Thurston was not present at the hearing, but decision in this case has been 
withheld until he could be consulted, and he advises that he does not object 
to the granting of the application. 

The petitioner in this case shows that there is no service on the lines 
applied for and that he has sufficient business on his and connecting lines to 
warrant the operation of the lines applied for, and from all the evidence 
presented it is believed that the granting of this application is in the public 
interest and will enhance the convenience and meet the necessity of the 
territory affected. 

Therefore, It Is Ordered, That the petition be granted and that the fran- 
chise certificate now held by the petitioner be amended to include the high- 
ways outlined in the caption hereof. 

This the 21st day of December, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Docket No. 1382. 

IN THE MATTER OF THE SALE BY CAPITAL COAST EXPRESS COM- 
PANY, INC., AND PURCHASE BY D. J. THURSTON, JR., d/b/a THUR- 
STON MOTOR LINES, OF CAPITAL COAST EXPRESS COMPANY 
CERTIFICATES AND FRANCHISE RIGHTS. 

ORDER APPROVING THE SALE AND PURCHASE OF THE FRANCHISE 
CERTIFICATES AND RIGHTS OF CAPITAL COAST EXPRESS COM- 
PANY, INCORPORATED. 

This Matter coming on to be heard upon the joint petition of Capital Coast 
Express Company, Inc., and D. J. Thurston, Jr., d/b/a Thurston Motor Lines, 
and being considered upon said petition and the attached agreement and 
completed contract and upon the knowledge of the situation referred to in 



172 "N. C. Utilities Commission 

said contract in the possession of the undersigned Commissioner, by reason of 
his authority for the supervision and examination of operations by motor 
carriers within North Carolina, the Commission finds as a fact as follows: 

A. That on the 31st day of August, 1940, subject to approval by this Com- 
mission and the Interstate Commerce Commission of the sale and purchase 
of the franchise certificates and rights of Capital Coast Express Company, 
Inc., the petitioners entered into a contract, a copy of the preliminary agree- 
ment and of the completed contract being attached to the petition and made a 
part thereof, and the said contracts have been executed by the parties thereto 
and delivered to I. M. Bailey, Escrow Agent, together with the cash portion 
of the purchase price, to be held by said Escrow Agent pending the approval 
of the sale and purchase by the aforesaid regulatory bodies, said contract, as 
providing therein, not to become effective except upon approval by the said 
two regulatory bodies. 

B. That the routes and operation of the Capital Coast Express Company 
are important in the intrastate transportation of freight within North Caro- 
lina, traversing important sections and operating over important highways. 
The operation forms between the capital city and eastern portion of North 
Carolina a very necessary operation between important carriers, and between 
Raleigh and Lenoir the operation is very essential to the distribution in East- 
ern North Carolina of commodities and merchandise and to the distribution in 
Piedmont and Western North Carolina of the produce of the entire section of 
the state; that if the operations now conducted by Capital Coast Express 
Company should be discontinued or the service rendered by the Company 
impaired, the public would be seriously hampered in the exchange of freight, 
and important transportation lines would suffer in the handling of intrastate 
freight; that being an operation wholly within the state of North Carolina, 
the said Capital Coast Express Company operation is registered with the 
Interstate Commerce Commission and by reason thereof handles interstate 
freight; that at important points, except for irregular trips, the interstate 
service furnished by said Capital Coast Express Company is the only service 
available by truck; that any impairment of the service or the discontinuance 
of the operation of Capital Coast Express Company would seriously hamper 
this interstate movement of commodities; that there are four stockholders 
of Capital Coast Express Company; that George R. Ross is now by reason of 
his special training and experience especially employed by the state of North 
Carolina through the Agriculture Department of said state and of necessity 
has to devote a considerable portion of his time to said special assignment; 
that George R. Ross, Jr., second stockholder, is expecting momentarily to be 
called to the service of the United States in the Army, being especially 
equipped by training and experience to join with the newly organized mecha- 
nized forces of the army and being especially urged by the authorities because 
of the commission as an officer held by him to join up in this arm of the 
service; that M. G. Ross, another stockholder, is the wife of George R. Ross 
and the mother of George R. Ross, Jr., and Wm. G. Ross, the fourth stock- 
holder; that neither M. G. Ross nor Wm. G. Ross can give to the operation of 
Capital Coast Express Company service the attention and time necessary to 
render the public service required of it, Wm. G. Ross now being independently 
employed; that it is necessary to have additional financing in order to take 
care of increased demands for the service of Capital Coast Express Company, 



Decisions and Adjustments of Complaints 173 

to provide adequate equipment for operation and to provide ample capital for 
the proper operation of the service offered by said company; that in view of 
the circumstances in which the four stockholders find themselves, it is im- 
provident to attempt to secure such additional capital for the continued 
operation of the service by Capital Coast Express Company. 

C. That D. J. Thurston, Jr., d/b/a Thurston Motor Lines, is an experienced 
operator both interstate and intrastate, operating partially within the ter- 
ritory adjoining that within which the Capital Coast Express Company op- 
erates, and operating through the possession of rights, certain interstate 
irregular service to the points covered by the operation of Capital Coast 
Express Company; that the operation of Thurston Motor Lines is such that 
the ownership by it of the franchise certificates and rights of Capital Coast 
Express Company more definitely fits into a well developed motor carrier 
service for rendering to the public the highest type possible of intrastate and 
interstate service to, from and within the territory covered by the combined 
operations of Capital Coast Express Company and Thurston Motor Lines; that 
D. J. Thurston, Jr., is financially able to provide immediately all necessary 
equipment, working capital and experience necessary to the continued oper- 
ation of the service which has been performed by Capital Coast Express 
Company and to develop that service to meet all needs and demands of the 
public to be served if the two operations are combined in the one; that D. J. 
Thurston, Jr., is willing to combine immediately said two operations and to 
furnish such service as may be required by public need and necessity. 

D. That it is essential to the preservation of the service of Capital Coast 
Express Company that the immediate sale and purchase of the franchise 
certificates and rights be approved by this Commission, as it is also likewise 
important and necessary that immediate approval be obtained from the Inter- 
state Commerce Commission. This Commission, by reason of its general 
supervision and right of examination into the affairs of motor carriers oper- 
ating within the state, is familiar with the necessity of this immediate ap- 
proval by this Commission, and the Capital Coast Express Company urges 
immediate approval of the sale and purchase as covered by the petition. 

Upon the foregoing facts the Commissioner finds that public convenience 
and necessity now served and to be served both by the present operation of 
Capital Coast Express Company and by D. J. Thurston, Jr., d/b/a Thurston 
Motor Lines, requires and will require the immediate approval of the sale 
and purchase as provided for in the contracts attached to and made a part 
of the petition filed herein, and said sale and purchase as provided for in 
said contracts is hereby approved and the same is immediately authorized, 
subject only to the reservation of this matter until the Interstate Commerce 
Commission shall have acted upon the application to it for its approval of said 
sale and purchase, and to the end that if said sale and purchase is not ap- 
proved by the Interstate Commerce Commission this Commission may be free 
to act for the protection of the public interests. 

It Is Further Ordered that the franchise certificate of Capital Coast Ex- 
press Company be and the same is hereby amended immediately that it be- 
comes possible for D. J. Thurston, Jr., d/b/a Thurston Motor Lines, to begin 



174 ~N. C. Utilities Commission 

the operation of Capital Coast Express Company's service through approval 
by the Interstate Commerce Commission. 
This the 21st day of October, 1940. 

(S) Stanley Winborne, 
Utilities Commissioner of 
North Carolina. 
(S) R. 0. Self, Chief Clerk. 
Docket No. 2087. 

APPLICATION OF CAPITAL COAST EXPRESS FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM NEW 
BERN TO BAYBORO, VANDEMERE, ORIENTAL, MINNESOTT BEACH, 
AURORA, CHOCOWINITY AND WASHINGTON. DOCKET No. 1518. 
(See Norfolk-Southern Bus Corporation Order, Docket No. 1534.) 

APPLICATION OF CAPITAL TRANSPORT LINES FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
RALEIGH TO NORTH WILKESBORO VIA SILER CITY, ASHEBORO, 
LEXINGTON, MOCKS VILLE, HARMONY, AND WILKESBORO OVER 
HIGHWAYS 64, 901, 115 AND 421. DOCKET 1087. 

APPLICATION OF HELMS MOTOR EXPRESS FOR FRANCHISE CERTIF- 
ICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM PITTS- 
BORO TO ALBEMARLE VIA SILER CITY, ASHEBORO, AND NEW 
LONDON VIA HIGHWAYS 64, 62 AND 52. DOCKET 1179. 

APPLICATION OF CENTRAL MOTOR FREIGHT LINES, ASHEBORO, 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM ASHEBORO TO RALEIGH OVER HIGHWAY 64; FROM 
ASHEBORO TO CHARLOTTE VIA NEW LONDON, OVER HIGHWAYS 
62, 52 AND 27. DOCKET 1635. 

Order 
The above entitled causes came on for hearing before the undersigned 
Commissioner and were heard in the Hearing Room of the Utilities Commis- 
sion in the City of Raleigh, on August 22, 1939. 
The applicants were represented as follows: 

Capital Transport Lines by its President, George R. Ross, Raleigh; Helms 
Motor Express by I. M. Bailey, Attorney, Raleigh; Central Motor Freight 
Lines by Willis Smith, Attorney, Raleigh; and T. Lynwood Smith, At- 
torney, Asheboro. 
The protestants were represented as follows: 

Motor Transit Company, Raleigh, and the Great Southern Trucking Com- 
pany, Charlotte, by Messrs. Ruark & Ruark, Attorneys, Raleigh. 

At the outset motion was made to amend the application of the Capital 
Transport Lines by changing the name of the applicant to Capital Coast 
Express Company, Incorporated. It was made to appear that since the applica- 
tion was filed in the name of the Capital Transport Lines, the Company had 
been incorporated under the name of Capital Coast Express Company, Inc. 



Decisions and Adjustments of Complaints 175 

There being no objection to the amendment, it was allowed and this ap- 
plicant will hereafter be, referred to as Capital Coast Express Company. 

For the reason that all three applications cover the same route between 
Raleigh and Asheboro, and the application of the Helms Motor Express and 
that of the Central Motor Freight Lines cover the same route from Asheboro 
to Charlotte, the three applications were consolidated and heard together by 
consent of all parties. 

In support of the application of the Capital Coast Express Company, Mr. 
George Ross, President of the Company, offered in evidence a map showing 
the highways over which he desired to operate between Raleigh and North 
Wilkesboro, with Pittsboro, Siler City, Asheboro, Lexington, Mocksville, 
Harmony and Wilkesboro as intermediate points, and gave testimony as to the 
directness of the route, the need and demand for the service and the con- 
venience which such operation would be to the public, not only between Ra- 
leigh and North Wilkesboro and intermediate points, but from points east of 
Raleigh all the way to the coastal section. The witness Ross also explained 
that shipments from Raleigh to North Wilkesboro by truck at the present 
time were transferred at Winston-Salem, which according to his contention 
tended to create delay and, in certain instances, increased the hazard of 
damage; and where the shipments originated east of Raleigh for North 
Wilkesboro another change was made necessary at Raleigh. Similar incon- 
veniences were shown where shipments originated at or were destined to 
Mocksville, Harmony and other points. 

H. C. Starling, of the King Drug Company in Raleigh; R. B. Etheridge, 
Chief of the Division of Markets of the Department of Agriculture of North 
Carolina; Leroy Martin, of Raleigh and Wilkesboro; B. W. Haigh, of the 
Farmers Cooperative Exchange and D. S. Abernethy, of the Mutual Press 
Printing Company, all testified that there was need for the service and that 
same would be a great convenience to the public. The full testimony of said 
witnesses is included within the first 38 pages of the record. 

At the close of the case of the Capital Coast Express Company, the Com- 
mission was advised that the Helms Motor Express and the Central Motor 
Freight Lines, same being Dockets Nos. 1087, 1179 and 1635, had reached an 
agreement as follows: 

"1. Helms Motor Express withdraws opposition to the granting of franchise 
to Central Motor Freight Lines upon the restrictions hereinafter specified." 

"2. Helms Motor Express withdraws opposition to the granting of franchise 
to Capital Coast Motor Freight Lines upon the stipulations hereinafter 
specified." 

"3. Capital Coast Motor Freight Lines will operate with closed doors be- 
tween Raleigh and Asheboro, with, however, the right to deliver between 
Raleigh and Asheboro shipments originating beyond either point or pick up 
between Asheboro and Raleigh freight for delivery beyond either point on 
their proposed route or at either Raleigh or Asheboro when destined beyond." 

"4. Central Motor Freight Lines will not handle any business originating 
at Raleigh or Charlotte destined to the other point." 

"5. Central Motor Freight Lines will not handle any freight originating 
beyond Charlotte or Raleigh destined beyond the other." 



176 "N. C. Utilities Commission 

"6. Central Motor Freight Lines as between Raleigh and Charlotte will be 
permitted to handle only such exchange freight as may be originated beyond 
such point and there exchanged for delivery at the other point or to points 
intermediate between Pittsboro and Albemarle." 

"7. Central Motor Freight Lines will operate with closed doors between 
Charlotte and Albemarle." 

"8. Central Motor Freight Lines will operate with closed doors between 
Raleigh and Pittsboro." 

The approval of the foregoing agreement by this Commission was opposed 
by the Great Southern Trucking Company and the Motor Transit Company, 
except Section 3, which relates to the Capital Coast Express Company, and 
said protestants stated that they had no objection to the granting of the 
franchise to the Capital Coast Express Company, as set out in Section 3 of 
said agreement. 

In opposing the approval of the agreement it was contended by the Great 
Southern Trucking Company that it maintained adequate service from High 
Point to Charlotte via Asheboro and Albemarle; that it had ample facilities 
for all of the public requirements and that if said agreement were approved 
and the Central Motor Freight Lines allowed to operate between Asheboro and 
Charlotte that much of the business now enjoyed by the Great Southern 
Trucking Company would be diverted to the Central Motor Freight Lines 
and its revenue considerably depleted. 

The Motor Transit Company contended that it now serves Asheboro, Ram- 
seur and Siler City from Greensboro; that it had ample facilities for all the 
public needs; that its service was excellent and that it even gave a pick up and 
delivery service at Asheboro and Siler City. It further contended that while 
the service from Raleigh to these points was by somewhat longer route, yet 
its schedules were so arranged that the service was prompt and that any 
delay, due to a difference in mileage, would be negligible. 

The protestants offered no testimony but adroitly presented their con- 
tentions by statements of counsel and cross examination of petitioners' 
witnesses. 

The applicant, Central Motor Freight Lines, in addition to the testimony of 
Mr. E. G. Cranford, offered twelve other witnesses from various sections along 
the proposed route. These witnesses were business men representing the 
grocery, furniture (wholesale and retail), farm implement, electric appliance, 
mortician and newspaper businesses. The composite of their testimony was 
that while the motor service given by the two protestant companies was ade- 
quate for the needs between points on the proposed route and points off the 
proposed route in other directions, said services were not adequate for the 
needs between points on the proposed route including Charlotte and Raleigh 
and points on the proposed route beyond Charlotte and Raleigh. It was empha- 
sized by the testimony of said witnesses that while the Great Southern Truck- 
ing Company had adequate facilities between High Point and Charlotte for 
movement of freight between those points, that its schedules were not adapted 
for the service of intermediate towns between Asheboro and Charlotte; and 
furthermore that the movement between Charlotte and High Point was so 
large that the Great Southern Trucking Company did not appear to be suffi- 
ciently interested in the local business between Asheboro and Charlotte to 
give the proper service. It was further pointed out by several witnesses that be- 



Decisions and Adjustments of Complaints 177 

tween Asheboro and Raleigh there was a considerable movement of furniture 
and electric appliances, farm implements and mortician supplies, and that the 
handling of said shipments by the Motor Transit Company from Asheboro to 
High Point and from Siler City to High Point through Greensboro to Raleigh 
was not satisfactory, and that if there was a direct line along the proposed 
route that this business would greatly increase and that much of the business 
which is now carried by private trucks would be given to the proposed line. 

The testimony further tended to show that Asheboro was a place already of 
considerable size and growing rapidly. That likewise Siler City and Ramseur 
were thriving towns and that the need for additional transportation facilities 
was increasing and would continue to increase. 

It was not denied by the applicant that the proposed line if so established 
would divert some business from the present operators, but it was contended 
that, due to the rapid growth of the towns and communities now served by the 
existing operators, the diversion of traffic would not seriously affect the income 
of the protestants. 

After careful consideration of the record, the Commission has reached the 
conclusion that public convenience and necessity for the proposed lines, with 
restrictions as set out in the agreement before mentioned, has been shown. 
The Commission is of the opinion that there will be some diversion of revenue 
from the present operators, but is impressed by the contention of the appli- 
cants that the increase in business, which is especially noticeable at this time, 
will compensate for any such diversion. 

It has been the Commission's policy, and still is, that existing operators 
should be protected from unfair and destructive competition and that too many 
operators are not in the public interest, but this does not mean that North 
Carolina has reached the saturation point in motor carrier development. North 
Carolina is a rapidly growing state, and when new highways are constructed 
between important points making more direct communication and making it 
possible for more expedient movement of both passengers and freight, the 
public cannot be denied these advantages. This particular highway from Ra- 
leigh to Asheboro is one of the main arteries connecting the eastern with the 
western part of North Carolina with highways radiating from each end to 
various points east and west, and may be considered as providing a bridge route 
between the east and the west. 

Wherefore it is Ordered: 

1st. That the present franchise certificate of the Capital Coast Express Com- 
pany, Inc., be amended to include the right to operate from Raleigh to North 
Wilkesboro over Highways 64, 901, 115 and 421, with restrictions as set out in 
the agreement heretofore mentioned. 

2nd. That a franchise certificate be issued the Central Motor Freight Lines 
to operate as motor vehicle carrier of freight from Asheboro to Raleigh over 
Highway 64; and from Asheboro to Charlotte, via New London, over Highways 
62, 52 and 27, with restrictions as set out in the agreement heretofore men- 
tioned, and: 



12 



178 "N. C. Utilities Commission 

3rd. That the application of Helms Motor Express to operate from Pitts- 
boro to Albemarle, via Siler City, Asheboro and New London via Highways 
64, 62 and 52, be and the same is hereby dismissed. 
This the 4th day of December, 1939. 

(Signed) Stanley Winborne, 

Commissioner. 
Dockets Nos. 1087, 1179 and 1635. 

APPLICATION OP CAROLINA COACH COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM RA- 
LEIGH TO WARRENTON, SERVING LOUISBURG, AND FROM WAR- 
RENTON TO CONWAY, SERVING MACON, VAUGHAN, LITTLETON, 
ROANOKE RAPIDS, WELDON, GARYSBURG AND JACKSON. DOCKET 
No. 1721. (iSee Atlantic Greyhound Corporation Order, Docket No. 1527.) 

APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER IN AND 
ABOUT KANNAPOLIS. DOCKET No. 1938. (See Kannapolis Motor Coach 
Company Order, Docket No. 1772.) 

APPLICATION OF CAROLINA COACH CO. FOR FRANCHISE CERTIFI- 
CATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM RALEIGH 
TO DURHAM VIA ROUTES No. 13 AND No. 9 AND U. S. ROUTE No. 70. 

Order 
This Matter came on for hearing and was heard before the undersigned 
Commissioner in the Hearing Room of the Utilities Commission in the City of 
Raleigh on February 8, 1939, after due notice had been given as required by 
the rules and regulations of the Commission. 

The applicant, Carolina Coach Co., was represented by Hon. Williss 
Smith, of Raleigh. 

The protestant, Atlantic Greyhound Corporation, was represented by 
Hon. I. M. Bailey, of Raleigh. 

At the present time the Carolina Coach Co. holds a franchise from Durham 
to Raleigh by Cary, Morrisville and Nelson, over State Highway No. 70. 
About a year prior to the filing of the instant application there was constructed 
between Raleigh and Durham a new highway from a point on Highway No. 70, 
five miles from Durham, intersecting with the road from Creedmoor to 
Raleigh, at a point five miles north of Raleigh, which new highway from 
Raleigh to Durham is now known as 70-A and enters Raleigh over State High- 
way 15-A. The numbers of the highway were different at the time the applica- 
tion was filed. 

In support of its application the Carolina Coach Co. offered its Traffic 
Manager, W. G. Humphrey, who testified that the principal reason for desiring 
a franchise from Durham to Raleigh over the new route was that the Carolina 
Coach Company operated fourteen trips from Raleigh to Durham daily, thir- 
teen of which continue on to Greensboro and Charlotte and also four trips by 
Chapel Hill into Greensboro, all of which schedules were operated over the 
same highway between Raleigh and Nelson, which resulted at times in two 



Decisions and Adjustments of Complaints 179 

schedules running between Nelson and Raleigh at the same time, thereby 
causing too much congestion on the highway. Furthermore, the witness 
Humphrey contended that the new road was being built up and that there was 
some demand for the service along the proposed route. The said witness fur- 
ther testified that the running time over the new route was 15 minutes less 
than over the present route, due to the fact that there was a difference in 
mileage of about five miles and that the road was much straighter than the 
present route, which is unusually crooked. 

The protestant, Atlantic Greyhound Corporation, offered no testimony in 
opposition to the granting of the franchise. 

The Commission finds as a fact that public convenience and necessity has 
been shown for the operation and since it is an alternate route between 
Raleigh and Durham, the Commission is of the opinion that the service 
should be given by the Carolina Coach Co., for the reason that if any other 
bus company were to be allowed to operate between said cities over route 70-A 
the service would be keenly competitive with and partly destructive of the 
operation of the applicant. 

Wherefore it is Ordered, that the franchise of the Carolina Coach Co. be 
amended so as to include operating rights between Raleigh and Durham over 
Highway 70-A, as shown on the new highway map, which highway was for- 
merly shown on the highway map as 15-A from Raleigh, then over Highway 9 
and then over Highway 70 to Durham. 

This the 6th day of December, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 313. 

APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
DURHAM OVER NORTH CAROLINA HIGHWAY No. 91, VIA WAKE 
FOREST TO THE INTERSECTION OF NORTH CAROLINA HIGHWAY 
91 AND U. S. HIGHWAY 64, THENCE OVER 64 TO ROCKY MOUNT. 

Order 
This Case was heard by Stanley Winborne, Commissioner, sitting alone, in 
the Hearing Room of the Utilities Commission in the City of Raleigh, North 
Carolina, on February 8, 1939. 

Appearing for the petitioner: Hon. Willis Smith, Attorney at Law, 
Raleigh, North Carolina. 

Appearing for the protestant: Hon. I. M. Bailey, Attorney at Law, 
Raleigh, North Carolina. 

Testimony was adduced at the hearing tending to show that there is con- 
siderable travel between Durham and Wake Forest, both by the citizens of 
said cities and by students from Wake Forest College visiting Duke Uni- 
versity and vice versa, and that there is an especial need for the establishment 
of passenger bus facilities between said places. Also there was some testimony 
tending to show the need of service by people living in Bunn. Other testi- 
mony was offered to the effect that by the establishment of this service 
from Durham through to Rocky Mount by Spring Hope that there would be 
created an almost direct and much shorter and more convenient route from 



180 ~N. C. Utilities Commission 

Rocky Mount to Durham, and that the cities of Rocky Mount and Durham 
were of sufficient size to maintain and support the operation. Further evidence 
was offered to show that students, and the public generally, traveling from 
Spring Hope, Rocky Mount and points east, would be greatly convenienced by 
such service and that it would obviate the necessity of the considerably farther 
route by Raleigh. Other testimony was offered tending to show that people from 
west of Durham would have a more convenient service by the proposed route, 
not only to Wake Forest but to Spring Hope, Rocky Mount and other points 
east. 

The chief objection of the protestant, the Atlantic Greyhound Corporation, 
was: That the establishment of the proposed service from Durham to Wake 
Forest would cross State Highway 15-A, about 16 miles north of Raleigh and 
about 9 miles south of Creedmoor; that the Carolina Coach Company now has 
a franchise from Raleigh over 15-A to Highway 15 to Oxford and on through 
Virginia to Richmond; that the Atlantic Greyhound Corporation has a fran- 
chise from Durham over Highway 15 on to Oxford, then over U. S. Highway 158 
to Henderson, then over U. S. Highway No. 1 to Richmond, and that if the 
Carolina Coach Company were to operate from Durham to Wake Forest, it 
would then have a franchise right to operate from Durham over Highway 91 
to 15-A, then over its present franchise from 15-A on into Richmond, thereby 
creating a competitive service with the Atlantic Greyhound Corporation from 
Durham to Richmond. It was further contended by the Atlantic Greyhound 
Corporation that a division of the business from Durham on to Richmond 
through Oxford would make the operation of both the Greyhound and the 
Carolina Coach Company unprofitable. 

The Commission was considerably impressed by the position taken by the 
Atlantic Greyhound Corporation, but since this case was heard, an agreement 
has been reached between the Carolina Coach Company and the Atlantic 
Greyhound Corporation in another case, which will be approved by this Com- 
mission simultaneously with this order, whereby the Carolina Coach Company 
will surrender its interstate franchise from Raleigh over Highway 15-A to 
Oxford to Richmond, leaving the Atlantic Greyhound Corporation as the sole 
operator over said route and thereby removing the principal objection advanced 
by the Atlantic Greyhound Corporation to the granting of the franchise in 
question. 

Further objection was interposed by the Atlantic Greyhound Corporation 
to the granting of the franchise in the instant case, in that it would be taking 
from the Atlantic Greyhound Corporation passengers which now go from 
Wake Forest to Durham via Raleigh; the Atlantic Greyhound making connec- 
tion at Raleigh wtih the Carolina Coach Company for Durham. 

Since the hearing of this matter before this Commission, a similar applica- 
tion has been heard by the Interstate Commerce Commission in Docket 
MC-13300 (Sub. — No. 4), and this Commission is today informed by the 
Interstate Commerce Commission that an order has been issued granting to 
the Carolina Coach Company the authority to engage in interstate commerce 
over the same route involved in the intrastate case. 

Upon a consideration of the entire record, this Commission is of the opinion 
that convenience and necessity have been shown and that the application of 
the Carolina Coach Company should be granted. 



Decisions and Adjustments of Complaints 181 

Wherefore it is Ordered, that upon a full compliance with all the rules and 
regulations of this Commission that a franchise certificate be issued to the 
Carolina Coach Company, or its present certificate amended, authorizing it to 
engage in intrastate commerce as a common carrier by motor vehicle of pas- 
sengers and their baggage, light express, mail and newspapers in the same 
vehicle with passengers over the routes described in the application filed 
herein and in the caption of this cause. 

This the 21st day of February, 1940. 

(Signed) Stanley Winborne, 

Commissioner. 

Docket No. 1109. 

APPLICATION OF CAROLINA COACH COMPANY FOR PERMISSION TO 

ISSUE SECURITIES 

Order 
This Matter Comes Before the Commission upon application of the Caro- 
lina Coach Company for permission to issue short term promissory notes 
in the aggregate sum of $133,156.80. Details of these notes are as follows: 



Denomi- 


Date of 


Date of 


Monthly Interest 


Rate of 


nation 


Issuance 


Maturity 


Payment Dates 


Interest 


$52,178.40 


9-29-38 


* 9-29-42 


Twenty-ninth 


6% 


18,000.00 


11-15-38 


*ll-15-42 


Fifteenth 


5% 


26,089.20 


12- 1-38 


*12- 1-42 


First 


6% 


26,089.20 


1-15-39 


* 1-15-43 


Fifteenth 


6% 


10,800.00 


2-15-39 


* 2-15-43 


Fifteenth 


5% 


* Monthly 


installment 


maturities, of 


an amount equal to ap 


•proximately 



1 /48th of the principal amount of the note. 

The application alleges, and the Commission so finds, that the only purpose 
of the said applicant for borrowing the money evidenced by said notes is to 
buy new busses to replace old and obsolete busses and to provide additional 
busses to meet the present need of the traveling public. 

The Commission is well acquainted with the condition of the applicant's 
busses and knows that many of the busses now in use are obsolete and inade- 
quate and must be replaced, and the Commission further knows that the appli- 
cant has an insufficient number of busses to meet the demands of the traveling 
public. 

Upon investigation it appears that the applicant has not the money necessary 
to provide this needed equipment and that the only way it can be obtained is 
by borrowing same. 

The Commission further finds that the issuing of said notes is for some 
lawful object within the corporate purposes of the utility; it is compatible 
with the public interest; is necessary and appropriate for and consistent with 
the proper performance by the utility of its service to the public as such 
utility and will not impair its ability to perform that service, and is reasonably 
necessary and appropriate for such purpose. 

Wherefore is is Ordered, that the Carolina Coach Company be and it is 
hereby authorized to issue the several notes in the amounts above set out at 



182 ~N. C. Utilities Commission 

the rate of interest above mentioned, maturing on the dates above given in the 
body of this order. 

This the 3rd day of January, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Docket No. 1496 

APPLICATION OF CAROLINA COACH COMPANY FOR AMENDMENT 
OF ORDER OF JANUARY 3, 1939, WITH RESPECT TO FINANCING 

Order 

This Matter comes before the Utilities Commission upon the application 
of Carolina Coach Company to amend the order issued by this Commission 
on January 3, 1939, in the particulars as set forth in said petition of the 
Carolina Coach Company dated November 24, 1939. 

It appears to the Commission that the only changes for which an amend- 
ment is asked are with respect to the date of issuance, date of maturity, date 
of monthly payments on one of the notes, and the reduction in the denomina- 
tion of one note from $10,800.00 to $10,000.00. The Commission is of the opin- 
ion that the order of January 3, 1939, should be amended as requested by the 
Carolina Coach Company. 

Wherefore, it is ordered: 

(a) That the date of issuance of the $18,000 note be changed from Novem- 
ber 15, 1938, to September 30, 1938, and that the date of maturity be changed 
from November 15, 1942, to September 30, 1942. 

(b) That the date of issuance of the $26,089.20 note be changed from De- 
cember 1, 1938, to November 9, 1938, and that the date of maturity on that 
note be changed from December 1, 1942, to November 15, 1942, and that the 
date of monthly payments be changed from the first to the fifteenth. 

(c) That the $10,800 note be changed from that amount to $10,000, and 
that the date of issuance be changed from February 15, 1939, to February 3, 
1939. 

In all other respects the said order of January 3, 1939, is to continue in effect. 
This 25th day of November, 1939. 

(S) Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1496. 

APPLICATION OF CAROLINA COACH COMPANY FOR PERMISSION 
TO ISSUE SECURITIES 

Order 
This Matter Comes Before the Commission upon application of the Caro- 
lina Coach Company for permission to issue short term promissory notes in 
the aggregate sum of $120,000. Details of these notes are as follows: 

One hundred and twenty thousand dollars to be issued as required 
with maturity in forty-eight monthly installments; interest payable 
monthly with installments. 

The application alleges, and the Commission so finds, that the purpose of said 
applicant for borrowing the money is to buy new buses to be used in appli- 



Decisions and Adjustments of Complaints 



183 



cant's business both in replacing old buses and in providing additional buses 
to meet the present need of the traveling public. 

The Commission is well acquainted with the condition of applicant's 
buses and knows that it is desirable for applicant to provide new and addi- 
tional buses for the use and benefit of the traveling public. 

Upon investigation, it appears to the Commission that applicant has not 
the money to provide this additional equipment without additional financing, 
and that the only way it can be obtained is by borrowing same in some manner 
similar to the manner proposed by applicant. 

The Commission further finds that the issuing of said notes is for some 
lawful object within the corporate purposes of the utility, it is compatible 
with the public interest; is necessary and appropriate for and consistent with 
the proper performance by the utility of its service to the public as such 
utility and will not impair its ability to perform that service, and is reasonably 
necessary and appropriate for such purpose. 

Wherefore it is Ordered, that the Carolina Coach Company be, and it is 
hereby, authorized to issue notes payable in equal monthly installments over 
a period of forty-eight months in such amounts as may be necessary from 
time to time to pay the purchase price of fifteen new buses at the rate of 
interest mentioned. The total amount of such issue of said notes for the 
purchase of said fifteen new buses is not to exceed $120,000. 

This 10th day of November, 1939. 

(Signed) Stanley Winborne, 
Utilities Commissioner of North Carolina. 

Docket No. 1745. 

APPLICATION OF CAROLINA COACH COMPANY FOR PERMISSION TO 
GUARANTEE NOTES OF ITS SUBSIDIARY, VIRGINIA CAROLINA 
COACH COMPANY. 

Order 
This Matter comes before the Utilities Commission upon the application by 
the Carolina Coach Company for approval by this Commission of the guaran- 
tee by the Carolina Coach Company of certain notes by Virginia Carolina 
Coach Company, a wholly owned subsidiary of Carolina Coach Company. The 
notes have heretofore been guaranteed by the Carolina Coach Company under 
the apprehension that its guarantee was not required to be approved by this 
Commission and are as follows: 











Balance 










Monthly 


Unpaid 


Date 


Collateral 


Date 


Amount 


Payment 


12-31-39 


Due 


Chattel Mtg. 1 Bus 


3-26-49 


$2,400.00 


$100.00 


$1,500.00 


3-15-40 


Chattel Mtg. 1 Bus 


4-21-39 


2,400.00 


100.00 


1,600.00 


4-15-40 


Chattel Mtg. 1 Bus 


4-30-39 


2,400.00 


100.00 


1,600.00 


4-15-40 


Chattel Mtg. 3 Buses 


3-27-39 


14,600.00 


304.17 


11,862.47 


3-15-40 



The Commission is fully advised as to the ownership by the Carolina Coach 
Company of the Virginia Carolina Coach Company and of the financial con- 
dition and status of each company. The Commission is well acquainted with 



184 N". C. Utilities Commission 

the condition of the business of both Carolina Coach Company and the Vir- 
ginia Carolina Coach Company. 

Therefore, upon consideration of the application of Carolina Coach Company 
dated the 29th day of January, 1940, this Commission is of the opinion that 
the guarantee of said notes by the Carolina Coach Company is proper and 
lawful and to the interest of all parties concerned. 

Wherefore, it is ordered that the guarantee by the Carolina Coach Com- 
pany of the notes of Virginia Carolina Coach Company in the denomination 
mentioned hereinabove be, and the same is hereby, approved. 

This 1st day of February, 1940. 

(Signed) Stanley Winborne, 

Commissioner. 

Docket No. 1818. 

APPLICATION OF CAROLINA COACH COMPANY AND OF N. M. SOUTH- 
ERLAND, DOING BUSINESS AS SOUTHERLAND BROTHERS 

Order Authorizing Transfer of Franchise Rights of Souther-land 
Brothers to Carolina Coach Company 

This Matter coming on to be heard before the Utilities Commission of 
North Carolina upon the petition of Carolina Coach Company and of N. M. 
Southerland, doing business as Southerland Brothers, for authority to effect a 
sale and transfer by N. M. Southerland, doing business as Southerland Broth- 
ers, to Carolina Coach Company carrying out an agreement heretofore made 
for a consideration mutually agreeable to the Carolina Coach Company and to 
said N. M. Southerland, doing business as Southerland Brothers; 

And the Utilities Commission of North Carolina being fully advised as to 
the situation of Carolina Coach Company and of N. M. Southerland, doing 
business as Southerland Brothers, and of their relationship to the transporta- 
tion business in North Carolina, which is under the supervision of this 
Commission; 

And this Commission having duly considered the effect of said proposed 
transfer and being of the opinion that the public service will be improved 
and the traveling public benefited by a sale and transfer to Carolina Coach 
Company of all the franchise rights and of certain motor bus equipment of 
N. M. Southerland, doing business as Southerland Brothers, to Carolina 
Coach Company; 

Now, Therefore, it is ordered by the Commission: 

1. That a sale and transfer of all of the franchise rights of N. M. Souther- 
land, doing business as Southerland Brothers, and of certain motor bus equip- 
ment, to the Carolina Coach Company be and the same are hereby, approved, 
and any agreement heretofore entered into by and between the said parties is 
hereby likewise approved and ratified. 

2. That the franchise rights heretofore held by Southerland Brothers and 
evidenced by Certificate No. 33, heretofore issued by this Commission, be, and 
the same are hereby transferred to Carolina Coach Company together with all 
rights thereto appertaining, and the Clerk of this Commission is authorized 
to make proper entry upon the records of this Commission and on the fran- 
chise certificate of Carolina Coach Company showing a due and proper trans- 



Decisions and Adjustments of Complaints 185 

fer of said franchise certificate and rights thereto appertaining to the Caro- 
lina Coach Company. 

3. That the Carolina Coach Company be, and it is hereby, authorized and 
directed to continue the operations that have heretofore been carried on by 
Southerland Brothers and to provide the public, which has heretofore been 
served by Southerland Brothers, with such service as has been heretofore 
furnished by Southerland Brothers. 

4. It is further ordered that the petitioners, Carolina Coach Company and 
N. M. Southerland, doing business as Southerland Brothers, be, and they are 
hereby, authorized and directed to proceed forthwith to carry into effect the 
said service under the franchise routes covered by said License Certificate 
No. 33, from and after 7:00 o'clock a.m., Monday, April 15, 1940. 

5. It is further ordered that the Carolina Coach Company be, and it is 
hereby, authorized to take over any and all rights of Southerland Brothers in 
and to leases or contracts of operation to or with union bus stations within 
the State of North Carolina and to assume such obligations of Southerland 
Brothers with respect thereto as may be satisfactory to the Carolina Coach 
Company. 

This 13th day of April, 1940. 

Utilities Commission, 

By (S) Stanley Winborne, 

Commissioner. 
Docket No. 1959. 

INVESTIGATION AND SUSPENSION DOCKET No. HS-1153— PASSEN- 
GER FARES BETWEEN STATIONS ON THE CAROLINA COACH COM- 
PANY'S RALEIGH-FAYETTEVILLE LINE. 

It Appearing, That there have been filed with the Utilities Commissioner, 
tariffs containing schedules stating new local one-way passenger fares to be- 
come effective on the 19th day of October, 1940, and that said schedules make 
certain increases in the fares for the intrastate transportation of passengers, 
the rights and interests of the public appearing to be injuriously affected 
thereby, and it being the opinion of the Commissioner that the effective date 
of said schedules contained in said tariffs should be postponed pending hearing 
and decision thereon; 

It is Ordered, That the Commissioner, upon his own initiative, without 
formal pleading, enter upon a hearing concerning the lawfulness of the fares 
stated in the said schedules, contained in said tariffs, viz.: 

Sixth Revised Page 6, to Carolina Coach Company's MP-NCUC No. 1. 

It is Further Ordered, That the operation of the said schedules contained in 
said tariffs be suspended, and that the use of the fares therein stated be 
deferred upon intrastate traffic until January 1, 1941, unless otherwise ordered 
by the Commissioner and no change shall be made in such fares during the 
said period of suspension unless authorized by special permission of the 
Commissioner. 

It is Further Ordered, That the fares thereby sought to be altered on the 
19th day of October, 1940, shall not be changed by any subsequent tariff or 
schedule, until this investigation and suspension proceeding has been disposed 



186 K. C. Utilities Commission 

of or until the period of suspension and any extension thereof has expired, 
unless authorized by special permission of the Commissioner. 

It is Further Ordered, That a copy of this order be filed with said schedules 
in the office of the Commissioner, and that copies hereof be forthwith served 
upon the Carolina Coach Company and that said carrier be, and it is hereby, 
made respondents to this proceeding; and 

It is Further Ordered, That this proceeding be, and the same is hereby 
assigned for hearing on the 14th day of November, 1940, at 10:00 o'clock 
a.m., before the Utilities Commissioner at his office in Raleigh. 

This the 18th day of October, 1940. 

By Order of the Commissioner, 
R. 0. Self, Chief Cleric. 

(SEAL) 

Docket No. 1153. 

APPLICATION OF THE CAROLINA SCENIC COACH COMPANY FOR 
REMOVAL OF CERTAIN RESTRICTIONS IN THE FRANCHISE APPLI- 
CABLE TO OPERATION BETWEEN HENDERSONVILLE AND ASHE- 
VILLE. 

Order 
This Case was called for hearing and was heard before Stanley Winborne, 
Utilities Commissioner, in the City of Raleigh, North Carolina, on August 31, 
1938. 
Appearing for petitioner, Carolina Scenic Coach Company: 
J. Will Pless, Asheville, N. C. 
L. G. Southerd, Spartanburg, S. C. 
C. D. Weeks, Hendersonville, N. C. 

For protestant, Atlantic Greyhound Corporation: 
I. M. Bailey, Raleigh, N. C. 
H. G. Hudson, Winston-Salem, N. C. 
L. B. Prince, Hendersonville, N. C. 

FACTS 

On January 10, 1925, the Corporation Commission, predecessor of the Utili- 
ties Commission, issued a franchise to Blue Nash Touring Car Line, of 
Landrum, South Carolina, owned by McD. Turner, to operate from the 
South Carolina line through Tryon, North Carolina, north to Hendersonville. 
On July 10, 1928, the Corporation Commission of North Carolina issued to 
Carolina Scenic Coach Lines of Spartanburg, South Carolina, owned by McD. 
Turner, and successor to the said Blue Nash Touring Car Line, a franchise to 
operate from the South Carolina line through Tryon north to Hendersonville. 
On July 10, 1931, the said Corporation Commission renewed the said franchise 
to the Carolina Scenic Coach Lines. On March 6, 1933, the franchise was 
amended to include Hendersonville to Asheville, Highway No. 191, "without 
privilege of picking up passengers in Hendersonsville for Asheville, except 
for that part of Asheville west of the French Broad River, known as West 
Asheville, or in Asheville on the east side of the French Broad River for 
Hendersonville." 






Decisions and Adjustments of Complaints 187 

Prior to the aforesaid amendment of March 6, 1933, the Carolina Scenic 
Coach Lines had no franchise privileges whatever north of Hendersonville, 
and connected at Hendersonville with the Atlantic Greyhound Lines. There 
are two main highways between Asheville and Hendersonville, one known as 
the Fletcher Road, over which the Atlantic Greyhound Lines operates, and 
the other the Mills River Road, over which the Carolina Scenic Coach Lines 
operates. The distance between Hendersonville and Asheville over the Fletcher 
Road, Highway No. 25, is 22 miles; over the Mills River Road, Highway No. 
191, is about 28 miles. 

In February, 1933, the Carolina Scenic Coach Lines applied to the Corpora- 
tion Commission for permission to operate from Hendersonville to Asheville 
over Highway No. 191, and in support of this request contended that the City 
of Asheville, being larger than Hendersonville, with better bus station facili- 
ties and the connecting point for more bus lines than Hendersonville, would 
be more convenient to the traveling public in changing from one line to 
another than Hendersonville, and the petitioner on its own motion voluntarily 
proposed to the Commission that if its request were granted, it did not desire 
to carry any passengers between Hendersonville and Asheville, nor in any way 
to infringe upon the franchise rights of the Atlantic Greyhound Lines between 
Hendersonville and Asheville. As a result of this representation, the Com- 
mission amended the franchise of the petitioner on March 6, 1933, as above 
quoted. 

This is the third case in which the petitioner has asked the Commission to 
remove said restrictions since the amendment of 1933. 

At the hearing on the instant case, the petitioner, in the support of its 
contention that public convenience and necessity demanded the removal of 
the restrictions, offered many petitions and fifteen witnesses. The composite 
testimony of said witnesses was about as follows: That certain young ladies, 
who lived in Hendersonville and worked in Asheville, were occasionally 
inconvenienced by the restrictions by not being able to leave Asheville on the 
Carolina Scenic Coach Lines for Hendersonville on the 6:20 p. m. schedule 
instead of the Greyhound schedule 40 minutes later; that other passengers who 
happened at times to desire to leave either Hendersonville or Asheville for 
the other place at the particular time of the Carolina Scenic Coach Line's 
schedule, were inconvenienced in not being able to do so and could not 
understand why said restrictions were imposed; that tourists visiting Ashe- 
ville had expressed the desire to make the loop going from Asheville to Hen- 
dersonville on one line, returning on the other, and vice versa: that not being 
able to make the loop, many tourists never saw the beautiful countryside on the 
Mills River Road, and therefore the adjacent landowners lost opportunities 
of selling property to tourists and of procuring summer boarders; that it was 
inconvenient for people who would ride on the Carolina Scenic Lines in spite 
of the restrictions in going from Asheville to be forced to get off the bus out- 
side of the corporate limits of Hendersonville and either walk or take a taxi 
into the town, or in going from Hendersonville to leave the petitioner's bus in 
West Asheville and either take a taxi or a city bus to Asheville proper; and 
that passengers boarding the bus either at Hendersonville or Asheville 
would become angered when they were told that they would have to get off 
on account of the restrictions. 



188 ~N. C. Utilities Commission 

The petitioner further contended that although it agreed to the restric- 
tions at the time said amendment was made, that conditions have changed 
and that now there is a need for competitive service between Asheville and 
Hendersonville. 

On the other hand, the protestant offered ten witnesses and many exhibits 
tending to prove: (a) That the Atlantic Greyhound Lines had acquired the 
franchise from Hendersonville to Asheville by purchase; (b) That at the time 
of the hearing it was operating thirteen round trips per day between Hender- 
sonville and Asheville, the first schedule leaving Asheville for Hendersonville 
at 6:20 a.m. and the last at 10:45 p.m., and the first schedule leaving Hender- 
sonville for Asheville at 7:30 a.m. and the last at midnight; (c) That these 
schedules afforded adequate and ample service between said cities and that if 
any further service were needed, the Atlantic Greyhound Lines was ready, able 
and willing to provide the service; (d) That the strictly local revenue actually 
accruing between Hendersonville and Asheville was only 8.4c a mile for the 
month of June, which it was contended was a fair average month; and (e) 
That during said thirty-day period only fifty-five local passengers traveled be- 
tween Asheville and Hendersonville and only 131 passengers were carried 
from points intermediate to Asheville and Hendersonville. It was contended 
by the protestant that there were now more schedules between Hendersonville 
and Asheville than the local needs required and that if the petitioner were 
allowed to compete in the business between Asheville and Hendersonville the 
protestant would be forced to ask that several of its schedules be discontinued. 
It was further contended that there were many more people living on the 
Fletcher Road between Hendersonville and Asheville than on the Mills River 
Road, and that a diminution in the number of schedules over the Fletcher 
Road would cause great inconvenience to the people on said road, many of 
whom work in Asheville and commute at various times of the day between 
Asheville and their homes. 

CONCLUSION 

The Commission has considered all of the testimony and exhibits set out in 
the rather voluminous record, and, in addition, sent one of its Inspectors, from 
the eastern part of the state, who traveled incognito over the line of the peti- 
tioner, interviewed numerous citizens in both Asheville and Hendersonville 
as to the need for this additional service and made a full report of his investi- 
gation to the Commission. The Inspector's report further supports the tenta- 
tive conclusion previously reached by this Commission, that the petition of 
the Carolina Scenic Coach Company should be again denied. 

The Commission fully sympathizes with the people living along the Mills 
River Road in their desire to have unrestricted schedules operating through 
their section, so that tourists either from Hendersonville or Asheville could 
make the loop and see their splendid country. The Commission also realizes 
that it might be some convenience to the traveling public between Henderson- 
ville and Asheville to leave on a schedule 20 or 30 minutes before or after 
the present schedules, but it must be remembered that no schedules can be 
arranged, no matter how frequent, which will at all times meet the exact 
convenience of everyone. The Commission further knows that there is always 
some confusion resulting from restrictions, but it has observed that this con- 
fusion can be reduced to a minimum if the company upon which the restric- 



Decisions and Adjustments of Complaints 189 

tion is imposed will in good faith cooperate with the Commission in advising 
the traveling public of the reasons for the restriction, and not seek to force 
a removal of the restrictions, especially when the restriction has been self-im- 
posed, as in this case, by calling the attention of the public to a possible service 
that it could use if the restriction were removed, thereby building up a public 
demand and creating dissatisfaction which otherwise would not exist. 

The twelve round trips now operated by the Atlantic Greyhound Lines be- 
tween Hendersonville and Asheville (one round trip having been eliminated 
since the hearing for lack of sufficient passengers) in the opinion of this Com- 
mission are ample for the public needs, and in fact from the number of local 
passengers carried, the service is more generous than between any other two 
cities in the state. From the amount of revenue per mile received by the 
Protestant from local passengers between Asheville and Hendersonville, it is 
apparent that if the restrictions on the petitioner's operation were removed 
and the local business divided, it would follow that the number of schedules 
now operated by the protestant would have to be reduced. 

While it is true that certain kinds of competition benefit the public, it is 
equally as true that certain kinds of competition are very much against the 
public interest. Specifically, where there are two bus lines operating in com- 
petition between two points, where there is insufficient business to reasonably 
support both lines, the inevitable result will be improperly maintained, obso- 
lete and dangerous equipment used by one or both of them. No utility can 
continue long to provide first-class service unless it is profitable. 

Since this case has been before the Commission three times, it is felt that 
the Commission should say, that unless there is a radical change in condi- 
tions and a great improvement in business between Hendersonville and Ashe- 
ville, the petition should not be renewed and the petitioner should endeavor 
to discourage and allay rather than arouse and encourage public demand for 
the removal of the restrictions. 

Wherefore it is Ordered, that the petition be and the same is hereby dis- 
missed. 

This the 12th day of December, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1224. 

APPLICATION OF THE CAROLINA SCENIC COACH COMPANY FOR 
REMOVAL OF CERTAIN RESTRICTIONS IN THE FRANCHISE APPLI- 
CABLE TO OPERATION BETWEEN HENDERSONVILLE AND ASHE- 
VILLE. 

Order Overruling Exceptions 
This Matter again comes before the Commission upon exceptions filed by 
the petitioner, Carolina Scenic Coach Company, to the order of this Commis- 
sion, dated December 12, 1938, dismissing the said petition. 

Having considered each and all of the exceptions filed both to the Findings 
of Fact and Conclusions of Law, the Commission sees no reason why the order 
of December 12, 1938, should be rescinded or modified. 

With particular reference to exception 1, sub-section (g) of the Findings of 
Fact it should be stated that in the order of December 12, 1938, the number of 
round trip schedules was inadvertently given as 13. This number of schedules, 



190 N". C. Utilities Commission 

as pointed out in the petitioner's exception, are erroneous and are the number 
of schedules of both the lines between Hendersonville and Asheville, but the 
Commission's statement in its order that the number of round trips operated 
by the Atlantic Greyhound Lines between Hendersonville and Asheville per 
day was sufficient to meet the public needs, was based upon the 7 round trips 
then operated by the Atlantic Greyhound Lines, which has since been reduced 
to 6. 

Wherefore it is Ordered, that each and all of said exceptions be and the 
same are hereby overruled and denied. 

This the 19th day of December, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1224. 

APPLICATION OP HAMISH TURNER, DOING BUSINESS AS CAROLINA 
STAGES, FOR FRANCHISE FROM N C.-S. C. LINE TO CHARLOTTE, 
NORTH CAROLINA, VIA SHOPTON, BIG STEEL CREEK CHURCH, 
NEIGHBORHOOD STORE, WILMONT, DIXIE AND BRIAR HILL. 

Order Denying Petition for Re-opening and for Taking of Testimony 

of Protestants 

This Matter comes on to be considered by the undersigned Commissioner 
upon the petition of Smoky Mountain Stages, lessee of Inter-Carolina Motor 
Bus Company, and Atlantic Greyhound Corporation for re-opening of this 
proceeding so that the said protestants may be permitted to further cross- 
examine the applicant, Hamish Turner, and introduce evidence on their behalf 
in opposition to the granting of the franchise applied for, and being consid- 
ered, and it appearing to the undersigned Commissioner that the petition for 
re-opening and the taking of testimony involves the matters and things dis- 
cussed at the hearing in this proceeding on May 3, 1939, upon which the under- 
signed Commissioner then ruled after argument by attorneys representing 
applicant and the said protestants, and the undersigned being of the opinion 
as stated at that time with reference to said cross-examination and testimony: 

It is Now, Therefore, Ordered, Adjudged and Decreed, that said petition be, 
and the same hereby is denied. 

This the 8th day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1567. 

APPLICATION OF HAMISH TURNER, DOING BUSINESS AS CAROLINA 
STAGES, FOR FRANCHISE FROM N. C.-S. C. LINE TO CHARLOTTE, 
N. C, VIA SHOPTON, BIG STEEL CREEK CHURCH, NEIGHBORHOOD 
STORE, WILMONT, DIXIE AND BRIAR HILL. 

Order Overruling Exceptions 
This Cause coming again before the Utilities Commissioner, to be heard 
upon exceptions filed by the protestants and respondents, Smoky Mountain 
Stages and Atlantic Greyhound Corporation, to the former order of the 



Decisions and Adjustments of Complaints 191 

Utilities Commissioner entered in this cause, denying the petition to re-open 
and to receive testimony, dated the 8th day of May, 1939, and the Commis- 
sioner having carefully considered the exceptions and being of the opinion that 
the same should be overruled: 

It is Ordered, That each and all of said exceptions be, and the same hereby 
are, overruled. 

This the 9th day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1567. 

APPLICATION OF HAMISH TURNER, SPARTANBURG, SOUTH CARO- 
LINA, DOING BUSINESS AS CAROLINA STAGES, FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS FROM NORTH CAROLINA-SOUTH CAROLINA STATE 
LINE TO CHARLOTTE, NORTH CAROLINA, VIA SHOPTON, BIG STEEL 
CREEK CHURCH, NEIGHBORHOOD STORE, OVER MECKLENBURG 
COUNTY HIGHWAY. ALSO FROM ONE-HALF MILE NORTH OF BIG 
STEEL CHURCH TO THE NEIGHBORHOOD STORE (OR WILMONT) 
BY WAY OF DIXIE AND BROW HILL. 

Order 

This Cause came on to be heard and was heard in the Hearing Room of the 
Utilities Commission, in the City of Raleigh, before me, the undersigned Com- 
missioner, on the 2nd day of May, 1939. 

Appearing for the applicant were: Attorneys J. W. Pless, of Asheville, and 
C. W. Tillett, of Charlotte. 

Appearing^ for protestants were: Attorneys R. G. Cherry, of Gastonia, 
for Smoky Mountain Stages; John H. Anderson, Jr., of the firm of Smith, Leach 
& Anderson, of Raleigh, for Carolina Coach Company, and I. M. Bailey, of 
the firm of Bailey & Lassiter, of Raleigh, for Atlantic Greyhound Corporation. 

The applicant offered in evidence certified copy of an order of the Interstate 
Commerce Commission, Division 5, dated 7th day of April, 1939, in Docket 
No. MC-17820, Sub. 2-TA, granting to the applicant, Hamish Turner, doing 
business as Carolina Stages, Spartanburg, South Carolina, temporary authority 
to operate as a common carrier by motor vehicle for a period of 180 days from 
said April 7, 1939, in interstate or foreign commerce from Rock Hill, South 
Carolina, over United States Highway 21 to Fort Mill, South Carolina, thence 
over unnumbered highways via Shopton, Steel Creek, Dixie, Briarhill (Brow 
Hill) and Wilmont, North Carolina, to Charlotte, and return over the same 
route, with the privilege of serving all intermediate points. 

It was made to appear that the route over which temporary authority had 
been granted by the Interstate Commerce Commission is the same route within 
the State of North Carolina from the state line to Charlotte, over which the 
applicant herein is asking for an intrastate franchise, the distance within the 
State of North Carolina from the South Carolina line to Charlotte being 
approximately 17 miles. 



192 ST. C. Utilities Commission 

It was further shown that the operation under the authority granted by 
the Interstate Commerce Commission had already begun and the applicant in 
this case seeks authority to engage in intrastate business within North Caro- 
lina while rendering interstate service. 

The applicant offered and examined, in support of his contention that con- 
venience and necessity should be found for the granting of the intrastate fran- 
chise, 9 public witnesses and tendered many more. 

The composite testimony of the public witnesses examined, as will be 
found in the record, was to the effect that there is no intrastate bus service 
over the route in question; that the territory along said route is very densely 
populated, especially that part from Shopton to Charlotte; that many of the 
people residing in said territory are employed in Charlotte and commute daily; 
that many are without automobiles; that in the families where an automobile 
is owned and a member of the family works in Charlotte and uses the car for 
daily transportation, other members of the family need the proposed service. 

The testimony further disclosed that the service offered by the Smoky 
Mountain Stages over North Carolina Highway No. 49 was only available to 
the public residing near Kendrick's Cross Roads, where Route 49 and Route 
25 cross not far from the South Carolina line, and that the greater part of the 
public to be served resided in the territory nearer Charlotte and too far from 
Highway 49 served by the Smoky Mountain Stages for said service to be of 
any convenience to the territory in question. 

Upon the conclusion of the applicant's case, due to the fact that the cross- 
examination of the applicant's witnesses indicated that the protestants 
intended to offer testimony tending to show that the operation of the appli- 
cant's line would create a competitive service between interstate points with 
the service now rendered both by the Atlantic Greyhound Corporation and the 
Smoky Mountain Stages, and that the authorization of this new line in intra- 
state service would tend to deplete the revenue of the existing carriers in their 
interstate business to the extent that it might endanger their ability 
to render intrastate service, the Commission asked the attorneys for the 
protestants if such were their intentions, and the said attorneys having re- 
plied in the affirmative, the Commission made the following ruling: 

"That unless the protestants can show by satisfactory proof that there 
is no intrastate need and necessity for this operation, the only thing 
that I can do is to grant a permit for the intrastate operation, 
expiring conterminously with the interstate permit." 

Whereupon, it was then agreed since such testimony as to interstate 
competition was regarded by the Commissioner as incompetent, that said 
testimony would not be offered, but that it should be understood that the 
reason said testimony was not offered was in deference to the intimation of 
the Commissioner that it would be excluded and it was further understood 
that the protestants were willing, able and ready to offer the testimony tending 
to show the effect of interstate competition and also the inability of the 
petitioner to properly finance the combined inter and intrastate service. 

In the opinion of this Commission, the only thing before it is the application 
for intrastate rights over the route for which authority to operate interstate 
has previously been granted by the Interstate Commerce Commission, as 
aforesaid, and this Commission is of the opinion that the evidence adduced at 



Decisions and Adjustments of Complaints 193 

the hearing by the applicant establishes convenience and necessity for the 
intrastate operation and that as to whether the interstate operation is de- 
structive of the protestants' lines is not a matter properly before this Com- 
mission and is now pending before the Interstate Commerce Commission tor 
full and final investigation. 

The Commission is further of the opinion that the public residing along the 
route within North Carolina should have the privilege of using this service 
intrastate so long as it continues interstate, and the intrastate business which 
such service will take from the protestants will be negligible. In reaching this 
conclusion it must be understood that no consideration whatever has been 
given to the need and necessity for the interstate service and the granting of 
an intrastate authority to operate herein pending the final investigation and 
determination by the Interstate Commerce Commission is entirely without 
prejudice to any party concerned. 

Wherefore It Is Ordered: 

1st. That the applicant Hamish Turner, doing business as Carolina Stages, 
be and he is hereby authorized to engage in intrastate motor vehicle common 
carrier passenger business over the highways set out in the application from 
the North Carolina-South Carolina line through Kendrick's Cross Roads, Steel 
Creek Church, Shopton, Brow Hill, Prison Camp, Wilmont and other inter- 
mediate points to Charlotte over the same route for which temporary author- 
ity has been given interstate, for a period of 180 days from April 7, 1939, unless 
the interstate authority shall be sooner terminated, in which event the 
authority herein granted shall terminate simultaneously with the interstate 
authority. 

2nd. That during the operation under the authority herein granted, the 
schedules of the applicant shall be to and from the Union Bus Station in the 
City of Charlotte, under the usual rules and regulations governing other 
operators. 

3rd. That during said operation the applicant shall promptly pay the Union 
Bus Station expenses assessed against him and shall strictly and promptly 
settle for all interline ticket sales, and shall in all other respects comply with 
the rules and regulations of the Utilities Commission; otherwise this tem- 
porary permit will be revoked. 

4th. That this cause is retained for further orders, depending upon the final 
determination of the matter by the Interstate Commerce Commission. 

5th. That this order shall constitute the applicant's authority to operate, 
and no formal franchise certificate will be issued at this time. 

This the 16th day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1567. 



13 



194 ~N. C. Utilities Commission 

APPLICATION OF CAROLINA STAGES, SPARTANBURG, S. C, FOR A 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM THE NORTH CAROLINA-SOUTH CAROLINA STATE LINE 
TO CHARLOTTE VIA SHOPTON, BIG STEEL CREEK CHURCH, NEIGH- 
BORHOOD STORE OVER MECKLENBURG COUNTY HIGHWAY. ALSO 
FROM A HALF MILE NORTH OF BIG STEEL CREEK CHURCH TO 
NEIGHBORHOOD STORE (OR WILMONT) BY WAY OF DIXIE AND 
BROW HILL. 

Order 
This application came on for hearing and was heard before the undersigned 
Commissioner, sitting alone, in the Hearing Room of the Utilities Commission, 
in the City of Raleigh, on October 16, 1939. 

Appearing for the Applicant: C. W. Tillett, Charlotte, N. C. 

Appearing for the Protestants, Atlantic Greyhound Corporation: 

I. M. Bailey, Raleigh, N. C; J. C. B. Ehringhaus, Raleigh, N. C; and 

H. G. Hudson, Winston-Salem, N. C. 

Smoky Mountain Stages: R. G. Cherry, Gastonia, N. C. 

Carolina Coach Company: John H. Anderson, Jr., Raleigh, N. C. 

This application has been before the Commission twice. On April 7, 1939, 
the Interstate Commerce Commission granted to the applicant a temporary 
franchise from Rock Hill, South Carolina to Charlotte, North Carolina, over 
Route 2; this temporary franchise expiring on October 4, 1939. 

On the 9th day of May, 1939, after a hearing, this Commission granted to the 
applicant an intrastate franchise over the same Route from the South Car- 
olina-North Carolina State Line to Charlotte, as was given in the Interstate 
Commerce Commission temporary permit, expiring coterminously with the 
temporary permit of the Interstate Commerce Commission. 

Subsequent to October 4, 1939, and after the Interstate Commerce Commis- 
sion had then refused to extend the temporary right theretofore granted, the 
applicant again applied to this Commission for intrastate rights from the 
North Carolina-South Carolina Line to Charlotte. This application was heard 
on October 16, 1939, and no order therein has been entered until this time, for 
the reason that this Commission after considering the testimony adduced at 
the hearing was of the opinion that there was insufficient business to justify 
an intrastate operation alone from the South Carolina State Line to Charlotte 
and, therefore, awaited the outcome of the case before the Interstate Com- 
merce Commission before entering an order in the intrastate case. 

On September 4, 1940, Division 5 of the Interstate Commerce Commission 
handed down a decision overruling the recommendation of Joint Board No. 2 
and found that public convenience and necessity had been shown for the 
operation and that a certificate would be issued to the applicant upon com- 
pliance with the rules of the Interstate Commerce Commission. 

The Interstate Commerce Commission having decided to grant to the appli- 
cant interstate rights, there is no longer any reason for denying to the people 
residing between the South Carolina State Line and the City of Charlotte the 
right and privilege to use the buses which will pass by their doors, and with- 
out attempting to analyze the voluminous record in the case, this Commission 
is of the opinion and so finds that public convenience and necessity has been 



Decisions and Adjustments of Complaints 195 

shown to exist for the granting of an intrastate franchise along with the 
interstate service. 

Wherefore It Is Ordered, that upon compliance with the rules and regula- 
tions of this Commission that a certificate be issued to the applicant authoriz- 
ing the transportation of passengers, mail and light express from North 
Carolina-South Carolina State Line to the City of Charlotte, N. C. by way of 
Shopton, Big Steel Creek Church, Neighborhood Store over Mecklenburg 
County Highway. Also from one-half mile north of Big Steel Creek Church to 
Neighborhood Store (or Wilmont) by way of Dixie and Brow Hill. 

This the 23rd day of September, 1940. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1567. 

APPLICATION OF CAROLINA-VIRGINIA LINES (FORMERLY LEAKS- 
VILLE-DANVILLE BUS LINE) TO EXTEND OPERATION AS MOTOR 
VEHICLE CARRIER FROM LEAKSVILLE TO GREENSBORO, N. C, 
OVER STATE HIGHWAY NO. 770 AND U. S. NO. 220 VIA STONEVILLE, 
MADISON AND SUMMERFIEDD. 

Order 

This Cause arises upon the application of Carolina- Virginia Lines (for- 
merly Leaksville-Danville Bus Line) to extend its operation from Leaksville to 
Greensboro via Stoneville, Mayodan and Summerfield over State Highway 
No. 770 and U. S. Highway No. 220. 

This application was filed with the Commission January 19, 1939 and set for 
hearing March 12, 1940 at 11:00 o'clock A.M. in the office of the Commission in 
Raleigh and advertised according to law and heard on that date. The ap- 
plicant originally applied under the old name, Leaksville-Danville Bus Line, 
but amended the application prior to the date of hearing by changing the name 
to Carolina-Virginia Lines. This change was permitted at the hearing, and the 
records in this office have been corrected to conform thereto. 

The applicant was represented at the hearing by Mr. D. Floyd Osborne of 
Leaksville and Mr. Clyde A. Shreve of Stokesdale, Attorneys. The Atlantic 
Greyhound Corporation protested the application, and was represented by 
Attorney I. M. Bailey. The petitioner, Mr. J. C. Gilley, d/b/a Carolina-Vir- 
ginia Lines and other witnesses appeared and testified for the applicant as to 
the public convenience and necessity for the operation proposed. The distance 
of the proposed run is about forty-three miles and only about eight miles of 
this between Stoneville and Madison is now served by a bus line. It was 
agreed by the applicant that if franchise were granted it should be limited 
so that no passengers would be picked up at Stoneville for Mayodan or 
Madison, nor in Madison for Mayodan or Stoneville, nor in Mayodan for 
Madison or Stoneville, nor between these towns on Highway No. 220 for 
delivery to points on said Highway No. 220. 

From the evidence presented at the hearing, it is evident that these people 
need a direct service into Greensboro, without being subjected to changes 
required by the present service, and from all the evidence presented it ap- 
pears that the proposed service will be in the public interest, therefore, it is 



196 1ST. C. Utilities Commission 

Ordered, that the petition be granted with the limitations agreed to as above 
outlined, and that the petitioner present his Certificate No. 99 after the ex- 
piration of fifteen (15) days after the date of this order for amendment, to 
include the extension herein granted, and that the petitioner file schedules 
and begin operating on this line within thirty days from the date of said 
amendment. 

This the seventh day of May, 1940. 

Stanley Winbobne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1516. 

PETITION CENTRAL COACH LINES, INCORPORATED, TO SELL ITS 

FRANCHISE RIGHTS. 

Order 

This Cause arises upon the application of Central Coach Lines, Incorporated 
to sell that portion of its operating rights south of Dunn, North Carolina to 
the Queen City Coach Company, Incorporated of Charlotte, and that portion 
of its operating rights north of Dunn, North Carolina to the Carolina Coach 
Company of Raleigh, and it appearing to this Commission that all the neces- 
sary legal requirements have been complied with, it is 

Ordered that the said application be approved, and that the Certificate No. 
440 be cancelled and that portion of said applicant's certificate between Dunn 
and Clinton over Highway 421 be transferred to the Queen City Coach Com- 
pany, Incorporated, and that the remainder of the applicant's franchise south 
of Dunn is hereby cancelled because of the fact that it conflicts with the 
Queen City Coach Company's present operating rights, and is therefore not 
transferred, and that part of said Certificate No. 440 from Tarboro, N. C. over 
Highway 258 and 43 to Pinetops and from Pinetops to Macclesfield over an 
unnumbered County Road, thence from Macclesfield to Wilson over Highways 
No. 124 and 42, thence over Highway No. 301 from Wilson to Dunn, and from 
Macclesfield to Crisp on Highway 124 as an off route point, be transferred to 
the Carolina Coach Company. 

This the twentieth day of December, 1939. 

(S) Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1801. 

APPLICATION OF CENTRAL COACH LINES, INC., TO SERVE MACCLES- 
FIELD. DOCKET NO. 1759. (See Virginia-Carolina Coach Company Order. 
Docket No. 1759.) 

APPLICATION OF CITY BUS LINES, INC., FOR FRANCHISE CERTIF- 
ICATE TO OPERATE IN THE CITY OF HICKORY. DOCKET NO. 1950. 
(See Hickory Bus Company Order. Docket No. 1945.) 



Decisions and Adjustments of Complaints 197 

PETITION OF K. HERMAN FULK d/b/a CITY TRANSIT COMPANY, 
HIGH POINT, NORTH CAROLINA, TO OPERATE A MOTOR VEHICLE 
CARRIER OF PASSENGERS BETWEEN HIGH POINT AND ARCHDALE 
AND OCCASIONAL TRIPS TO TRINITY. 

Order 

This Cause arises upon application of K. Herman Fulk, doing business as 
City Transit Company, for authority to operate a motor vehicle carrier of 
passengers between High Point and Archdale and occasional trips to Trinity. 

Hearing was held on this application as advertised on January 30, 1940. 
No opposition appeared and the evidence presented by the applicant proved 
conclusively the necessity for the service requested and, since the applicant 
had been granted authority to operate within the city of High Point by the 
High Point City authorities, it is, therefore, 

Ordered, That this petition be granted and authority be granted to operate 
from the City of High Point over Highways Nos. 311 and 61 to Archdale and 
Trinity and that certificate issue when applicant has complied with the law 
by filing insurance with this office in accordance with the law and the Com- 
mission's Rules and Regulations. 

This twelfth day of March, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1708. 

JOHN S. & M. M. MAYBERRY t/a CITY TRANSIT COMPANY. 

Order. 
This Cause arises upon the application of the above named company for 
motor vehicle franchise to transport passengers from Elkin to State Road via 
Highway No. 21; thence through Jonesville and Arlington to Rena also via 
Highway No. 21; thence Elkin over Highway No. 268 to intersection of County 
Road; thence to Austin and return via Pleasant Hill on a County Road; thence 
Elkin to Cycle through Jonesville. 

Application was advertised in the newspapers in the vicinity affected by 
the application, and hearing was held as advertised, at 10:30 o'clock on 
September 28, 1939. Applicant was represented by Hoke F. Henderson, At- 
torney, Elkin, N. C. I. M. Bailey of Raleigh represented the protestants, 
Atlantic Greyhound Corporation. Witnesses were presented and examined, 
and at the conclusion of testimony an agreement was reached between the 
applicant and the protestant whereby the protestant withdrew objection to 
the granting of the franchise when limited according to the following: 
Applicant to render hourly service in the towns of Elkin, Jonesville 
and Arlington, but service outside of these towns to be limited to 
one schedule coming in and one going out on each shift of the mills 
served by the applicant. 

The granting of the application as altered by the agreement appears to be 
in the interest of public convenience and necessity and, therefore, it is 



198 ~N. C. Utilities Commission 

Ordered that the application be granted as agreed to between the applicant 
and the protestant, and that certificate be issued when applicant has otherwise 
complied with the law by filing insurance and equipment specifications in 
accordance with the statutes and the Rules and Regulations of the Com- 
mission made thereunder. 

This the second day of December, 1939. 

(S) Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1656. 

W. E. COLE. JOINT APPLICATION OF HENSLEY MOTOR LINES OF 
ASHEVILLE TO SELL FRANCHISE NO. 431. DOCKET NO. 873. (See 
Hensley Motor Lines Order. Docket No. 873.) 

W. E. COLE d/b/a TURNER'S TRUCKING LINE, SALE OF CERTIFICATE 
NO. 437 TO NEMIAH GOLDSTEIN AND RAYMOND G. SMITH d/b/a 
TURNER'S TRUCKING LINE. DOCKET NO. 1724. (See Turner's Trucking 
Line Order. Docket No. 1724.) 

APPLICATION OF CONOVER-NEWTON BUS LINE FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
CONOVER TO NEWTON. DOCKET NO. 1634. (See Inter-City Bus Line 
Order. Docket No. 1626.) 

PETITION DAYTON BROTHERS BUS LINE, INCORPORATED, TO SELL 
THE OPERATING RIGHTS CONTAINED IN FRANCHISE CERTIFICATE 
NO. 419 TO CLARENCE L, DAVIS, d/b/a APPALACHIAN TRAIL BUS 
LINE. 

Order 
This Cause arises upon the application of Clarence L. Davis, d/b/a Ap- 
palachian Trail Bus Line to purchase the operating rights contained in Fran- 
chise Certificate No. 419 now outstanding in favor of Dayton Brothers Bus 
Line, Incorporated, and the said Dayton Brothers Bus Line, Incorporated, 
joins in the application for sale to the Appalachian Trail Bus Line. The said 
certificate No. 419 now held by Dayton Brothers Bus Line, Incorporated, has 
operating rights over Highway No. 28 from Franklin, N. C. to Murphy, via 
Hayesville, and from Murphy to the North Carolina-Tennessee State Line down 
the Hiawassee River via Unaka. 

This Commission is acquainted with the applicant, Davis, and also with 
Dayton Brothers, and is of the opinion that favorable action on this applica- 
tion will be in the interest of the public, therefore, it is 

Ordered that the petition be granted and that the intrastate rights in 
Franchise Certificate No. 419 now owned by Dayton Brothers Bus Line, In- 
corporated, be transferred to Clarence L. Davis, d/b/a Appalachian Trail Bus 
Line, and that when the applicant, Davis, has otherwise complied with the 
requirements of the Motor Vehicle Act, that Certificate issue to him and shall 
be No. 467 and that the Certificate now standing in the name of Dayton 



Decisions and Adjustments of Complaints 199 

Brothers Bus Line, Incorporated, known as No. 419 be cancelled effective 
February 8, 1939. 

This the eighth day of February, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1523. 

APPLICATION OF EDENTON-MACKEYS FERRY COMPANY BUS LINE 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER BETWEEN ENGELHARD AND THE VIRGINIA STATE LINE 
VIA FAIRFIELD, COLUMBIA, NEW ALBEMARLE SOUND BRIDGE, 
EDENTON, VALHALLA AND SUNBURY. DOCKET NO. 1388. (See Nor- 
folk-Southern Bus Corporation Order. Docket No. 1235.) 

APPLICATION OF EDENTON-MACKEYS FERRY COMPANY BUS LINE 
FOR FRANCHISE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
SWANQUARTER, NORTH CAROLINA TO THE NORTH CAROLINA- 
VIRGINIA STATE LINE DESTINATION SUFFOLK, VIA FAIRFIELD, 
COLUMBIA, EDENTON AND SUNBURY OVER HIGHWAYS NOS. 94, 64, 
172 AND 32. 

Order 
This Cause came on for hearing and was heard on November 22, 1938 in 
the office of the Utilities Commission in the City of Raleigh upon the applica- 
tion of the Edenton-Mackeys Ferry Company Bus Line for franchise to 
operate as motor vehicle carrier from Swanquarter, North Carolina, to the 
North Carolina-Virginia State Line destination Suffolk, Virginia via Fairfield, 
Columbia, Edenton and Sunbury over Highways Nos. 94, 64, 172 and 32. 

The petitioner was represented by Hon. J. H. McMullan, Attorney, Edenton, 
North Carolina. The application was opposed by Engelhard-Washington Bus 
Line through its attorney Hon. Walter L. Spencer, Raleigh, North Carolina, 
and by the Norfolk-Southern Bus Corporation through its attorney, Hon. W. B. 
Rodman, Sr., Norfolk, Virginia and Washington, North Carolina. 

The applicant in this case formerly operated the ferry between Mackeys 
and Edenton, which operation was discontinued as a result of the building of 
the bridge across Albemarle Sound, just below Edenton, which is now known 
as Highway No. 172. The applicant has for years been engaged in the trans- 
portation business and desires to continue in the transportation business on 
the Highways and contends that it is this line of business for which he is best 
qualified. 

From the evidence adduced at the hearing, the following facts are found: 
That the territory between Columbia and Edenton over Highways 64 and 
172 is served by the Norfolk-Southern Bus Corporation, operating between 
Williamston and Columbia over Highway 64 and between Williamston and 
Edenton into Norfolk over Virginia Highway 17 ; that there is no paved high- 
way the entire distance between Engelhard and Columbia and no operation 
between the point near Swanquarter on Highway 264 and Columbia over 
Highway 94, and that at certain seasons of the year the condition of this road 
is impassable; that Engelhard, Swanquarter and vicinity are now served 



200 "N. C. Utilities Commission 

through Washington, N. C. by the Engelhard- Washington Bus Line, operated 
by Mrs. Seth Gibbs; and that there is no operation between Edenton and the 
Virginia State Line over Highway 32, except from the junction of Highways 
30 and 32 at Sunbury, over which the Carolina Coach Company operates 
interstate to and from Norfolk, Virginia. 

It is the desire and policy of this Commission to authorize the operation of 
bus service between all points where convenience and necessity has been 
shown where there is no present operation between said points, and in some 
cases to authorize additional service between points already served where 
there is a public demand for the service and where it is found that the demand 
is greater than the existing operator can meet, but the authorization of 
duplication of service between the same points where the existing operation is 
not compensatory is not in the public's interest. With this thought in mind, 
the Commission has made some investigation, since the hearing in this case, 
of the financial condition and the income of the operators now serving parts 
of the route in question over which the applicant desires to provide additional 
service. 

It was contended at the hearing that there was very little business between 
Columbia and Edenton, and an examination of the income of the Norfolk- 
Southern Bus Corporation between Edenton and Columbia reveals that the 
average number of passengers traveling between said points per month is 
183, and that the average gross income received per month was $69.14, or just 
a fraction more than $2 per day. Obviously there is not sufficient business 
between said points to justify an additional bus line. 

Between Engelhard and Columbia the greater part of the highway from the 
junction point east of Swanquarter to Columbia is not paved and is 
unimproved. 

Service is now provided from Engelhard through Swanquarter through 
Belhaven into Washington, there connecting with the Norfolk-Southern Bus 
Corporation and other lines for points north, south and west. It is recognized 
that the route for passengers traveling from Engelhard to Edenton is rather 
circuitous by the present service but it is also known that if it were prac- 
ticable for an operation from Swanquarter over Highway 94 to Columbia 
much of the business from Engelhard north would be diverted from the 
Engelhard-Washington Bus Line, which diversion of business would greatly 
cripple, if not destroy, the present service which is now struggling to exist. It 
may be that in the near future when said road from Swanquarter to Columbia 
direct is paved and this section of the State which is already developing has 
attained sufficient growth, the proposed line can be justified, but such is not 
the case today as this Commission sees it. 

From Edenton over route 32 to the Virginia line there is no present opera- 
tion except for a short distance from Sunbury to the Virginia line, which is 
an interstate service, and there should be considerable travel from Edenton to 
the Virginia line on to Suffolk, Richmond and other points north and north- 
west, and it is believed that there is a need and necessity for this service and 
that a sufficient amount of travel would develop over this part of the line to 
justify the granting of a franchise. 

Wherefore It Is Ordered: 

First, that the applicant be granted the franchise to operate from Edenton 
over Route 32 to the Virginia line. 



Decisions and Adjustments of Complaints 201 

Second, that that part of the application asking for franchise from Edenton 
to Columbia to Engelhard over Routes 172, 64 and 94 be denied. 

Third, that franchise certificate be issued to the applicant when full com- 
pliance has been made with the requirements of this Commission. 
This the 25th day of April, 1939. 

Stanley Winborne:, 
Utilities Commissioner. 
R. O. Self, Chief Clerk. 
Docket No. 1388. 

APPLICATION OF EDENTON MACKEYS FERRY COMPANY FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE FREIGHT 
AND EXPRESS CARRIER FROM SWANQUARTER, N. C, TO FAIR- 
FIELD VIA HIGHWAY 94, TO COLUMBIA VIA U. S. 64 AND NEW U. S. 
172, TO EDENTON VIA STATE HIGHWAY 32, TO VIRGINIA STATE 
LINE VIA SUNBURY. 

Order, 
This Cause came on for hearing and was heard on November 22, 1938 in the 
office of the Utilities Commissioner in the City of Raleigh upon the applica- 
tion of Edenton Mackeys Ferry Company for franchise to operate as Motor 
vehicle freight and express carrier as outlined above. 

The petitioner was represented by Hon. J. H. McMullan, Edenton, N. C. The 
application was opposed by the Norfolk Southern Bus Corporation through its 
Attorney, W. B. Rodman, Sr., Norfolk, Virginia and Washington, and by 
Habit Motor Lines, represented by Mr. W. D. Pruden, Edenton, North 
Carolina. 

The principal objection to the application was to that part of the application 
south of Edenton where the Habit Bros, have intra and interstate rights and 
the Norfolk Southern Bus Corporation holds franchise for the transportation 
of light express. 

In Docket No. 1388, this same applicant was denied the right to operate 
south of Edenton for the same reason presented in this case, but was granted 
the right to operate from Edenton to the Virginia State Line over Highway 
No. 32, destination Suffolk, Virginia, and it is thought from the evidence that 
public convenience and necessity is shown for the granting of this application 
for the same highway, between the same termini as was done in No. 1388, 
therefore, it is 

Ordered That that portion of the application which calls for the right to 
operate between Edenton to the North Carolina-Virginia State Line over 
Highway No. 32 be granted, and that the remainder of said application be 
denied, and that certificate will issue when the applicant has otherwise 
complied with the law and filed equipment specifications and insurance and 
it is 

Further Ordered, that the applicant may withhold such further compliance 
until his application with the Interstate Commerce Commission for both 
freight and passenger rights has been passed upon in so far as his operation 
from Edenton to Suffolk is concerned, but he may comply with this order to 



202 29". C. Utilities Commission 

operate between Sunbury and Edenton, pending final disposition of the Inter- 
state application, if he so desires. 
This the 13th day of June, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Cleric. 
Docket No. 1425. 

APPLICATION OF ENGELHARD-WASHINGTON BUS COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER OF PASSENGERS FROM ENGELHARD TO FAIRFIELD ON THE 
NORTH SIDE OF MATTAMUSKEET LAKE, THENCE TO COLUMBIA 
VIA KILKENNY. 

Order 
This Cause arises upon the application of the Engelhard-Washington Bus 
Company, Mrs. S. M. Gibbs, owner. Hearing was held on July 13, 1939 at 11:00 
o'clock a.m. at the office of the Commissioner in Raleigh. 

Applicant was represented by Simms and Simms, Attorneys, Raleigh, North 
Carolina, and evidence was presented which showed that there was no bus 
service on the routes asked for. No opposition made appearance at the hearing. 
The applicant operates from Washington, N. C. to Engelhard, N. C. over 
Highway No. 264 and appears to be in a position to operate the routes asked 
for better than any other carrier now in operation. Other applicants have 
been denied the right to operate this route because of the fact that if this 
operation between Columbia and Engelhard via Fairfield is operated by 
another carrier, it will divert business from the Engelhard-Washington Bus 
Company, which it could not afford to lose, and it is thought that the oper- 
ation by the applicant on the proposed line will not only enhance applicant's 
revenue, but will improve the convenience to the traveling public in that 
section, therefore it is 

Ordered that the petition be granted and that Certificate No. 401 now held 
by applicant be amended to include the highways called for in this application 
and that applicant begin operation within thirty days after the filing of 
schedules and tariffs therefor. 

This the seventh day of September, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1602. 



Decisions and Adjustments of Complaints 203 

APPLICATION OF FREDRICKSON MOTOR EXPRESS CORPORATION 
FOR TRUCK FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER FROM CHARLOTTE TO NEWTON; CHARLOTTE 
TO DENVER OVER HIGHWAY 271, DENVER TO NEWTON OVER HIGH- 
WAY 73. ORIGINALLY SET FOR HEARING ON MAY 21, 1937, AT 11:00 
A. M. DOCKET NO. 1000. 

APPLICATION OF SMITH'S TRANSFER COMPANY FOR TRUCK FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
FROM MORGANTON TO CHARLOTTE AS FOLLOWS: MORG ANTON TO 
TOLUCA OVER HIGHWAY 18; TOLUCA TO LINCOLNTON OVER HIGH- 
WAY 27; LINCOLNTON TO DENVER OVER HIGHWAY 150; DENVER 
TO CHARLOTTE OVER HIGHWAY 271. DOCKET NO. 1005. 

Order on Consolidated Hearing 

This Cause arises upon the applications in Dockets Nos. 1000 and 1005 
stated above, which were advertised according to law and heard at 2:30 p.m., 
August 20, 1937. The issuance of order in the matter was withheld pending 
similar applications to the Interstate Commerce Commission. The hearing was 
on the consolidated dockets, as both involved some of the same highways, 
and the applicant in Docket No. 1000 was opposing the applicant in Docket 
No. 1005. The applicant in Docket No. 1005, the Smith's Transfer Company, 
is asking intrastate franchise between Morganton and Charlotte via Highway 
18, 27, 150, and 271 via the towns of Toluca, Lincolnton, and Denver. The 
applicant in Docket No. 1000, Fredrickson Motor Express Corporation, filed 
application largely to discourage the proposed service of Smith's Transfer 
Company as the principal point on the line between Charlotte and Morganton 
is Lincolnton, now served by Fredrickson Motor Express Corporation, and 
Fredrickson's company for many years has been making connection with 
Smith's Transfer Company at Hickory and Morganton for points north and 
west. The only other point of consequence on the proposed line which could be 
served which is not now getting service is Toluca. Denver is being served by 
M. & M. Motor Express. 

Some time prior to the date of this hearing the two companies above named 
had entered into a contract with each other whereby they would exchange 
shipments at Hickory, and as an indication of Fredrickson's good faith 
therein, he gave to Smith's Transfer Company the franchise rights between 
Hickory and Morganton, and under said agreement they were to transfer 
freight at Morganton. This agreement has probably expired, and we have no 
information that it has been renewed. Since that time Smith has begun to 
operate interstate into Charlotte over Fredrickson at several places. Smith's 
Transfer Company took the position at the hearing that it had to inaugurate 
the interstate service between Knoxville, Tenn., and Charlotte, N. C, because 
of competition from irregular common carriers operating under the Inter- 
state Commerce Commission taking all the interstate business, with low 
rates through that territory, and that he had inaugurated the interstate 
service in self defense. Hickory has always been a large transfer point and 
this Commission is inclined not to disturb the present long established service 
through that gateway, especially since the interstate application has been 
granted for Smith's Transfer Company to operate from Morganton to States- 
ville into Charlotte, and from Hickory to Asheville over different routes into 



204 1ST. C. Utilities Commission 

Charlotte. It is not thought expedient to permit the Smith's Transfer Com- 
pany to operate in intrastate service to Charlotte as this would destroy Fred- 
rickson's service, which is at present adequate and shows that public con- 
venience and necessity is being fully met. Therefore it is 

Ordered that the application of Smith's Transfer Company be denied. And 
it is 

Further Ordered that Docket No. 1000, application of Fredrickson Motor 
Express Corporation be dismissed. 
This the 6th day of January, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Se;lf, Chief Clerk. 
Dockets Nos. 1000 and 1005. 

APPLICATION OF GREENSBORO-FAYETTEVILLE BUS LINE, INC., FOR 
AUTHORITY TO OPERATE AS A MOTOR VEHICLE CARRIER BE- 
TWEEN FAYETTEVILLE AND LILLINGTON. DOCKET NO. 1059. (See 
Queen City Coach Company Order. Docket No. 1059.) 

APPLICATION OF GREENSBORO-FAYETTEVILLE BUS LINE, INCOR- 
PORATED, FOR FRANCHISE CERTIFICATE TO OPERATE OVER 
COUNTY ROAD BETWEEN FAYETTEVILLE AND FORT BRAGG. 

Order 

This Cause arises upon the application of Greensboro-Fayetteville Bus 
Line, Incorporated, for authority to operate a bus over a short road out of 
Fayetteville over an unnumbered road via State Normal, about seven miles to 
Junction of said unnumbered County Road with N. C. 87, which is near the 
entrance to Fort Bragg Reservation. 

Applicant in this case now holds franchise from Fayetteville to Fort Bragg, 
and the road in question has long been a County Road, but has recently been 
improved to relieve the congestion on Highway No. 87, formerly known as 
Highway No. 24, between Fort Bragg and Fayetteville, therefore, it is 

Ordered That since the applicant in this case has a franchise and runs ten 
minute service between Fort Bragg and Fayetteville, the application is 
granted for the purpose of relieving congestion on Highway No. 87 between 
Fayetteville and Fort Bragg; and for the further reason that franchise over 
this unnumbered highway cannot consistently be given to any carrier other 
than the applicant in this case; and for the further reason that a great 
emergency exists in that area because of the National Defense program at 
Fort Bragg, and it is 

Further Ordered That Certificate No. 101, of the applicant, will be amended 
accordingly upon presentation. 

This the eighteenth day of October, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Seuf, Chief Clerk. 

Docket No. 2086. 



Decisions and Adjustments of Complaints 205 

APPLICATION FOR THE SALE AND/OR TRANSFER OF FRANCHISE 
CERTIFICATE NO. 233, NOW HELD BY HABIT BROTHERS MOTOR 
LINE TO THE VIRGINIA DARE TRANSPORTATION COMPANY. 

Order 

This Matter comes before the Commission upon an application dated 
October 25, 1938 and received by this Commission November 2, 1938, signed 
by Habit Brothers Motor Line, per John Habit, and the Virginia Dare Trans- 
portation Company by Guy H. Lennon, Manager, asking that this Commission 
approve the sale and/or transfer of Certificate No. 233, now held by the 
Habit Brothers Motor Line to the Virginia Dare Transportation Company. 
With said application there were filed with this Commission various exhibits 
showing the equipment to be transferred, the financial standing of both seller 
and purchaser and other information required by this Commission, all of 
which has been considered by this Commission. This Commission has further 
investigated the territory to be served, and has taken into consideration the 
ability of the purchasing company to render service to the public and has 
reached the conclusion that the sale and transfer of the said Certificate to the 
Virginia Dare Transportation Company will be in the public interest and 
will result in a considerable improvement in service in the territory to be 
served. 

Wherefore It Is Ordered, that the sale and/or transfer of Certificate No. 
233, now held by Habit Brothers Motor Line, be transferred to the Virginia 
Dare Transportation Company at and when said approval is obtained from 
the Interstate Commerce Commission. 

It Is Further Ordered, that when said approval is obtained from the Inter- 
state Commerce Commission that the present Certificate No. 233 be sur- 
rendered to this Commission and a new Certificate be issued for the route 
covered therein to the Virginia Dare Transportation Company. 

This the 23rd day of November, 1938. 

(Signed) Stanley Winborne, 

Commissioner. 

Docket No. 1456. 

PETITION JOHN HABIT AND JOE HABIT d/b/a HABIT BROTHERS FOR 
AUTHORITY TO TRANSFER OPERATING RIGHTS TO VIRGINIA- 
CAROLINA TRANSPORTATION COMPANY. 

Order 

This Cause arises upon the application of John Habit and Joe Habit, d/b/a 
Habit Brothers, of Edenton, North Carolina, holders of Franchise Certificate 
No. 233, copy of which is recorded and on file in this office, for transfer to 
Virginia-Carolina Transportation Company, a corporation duly organized 
under the laws of the State of North Carolina with head office in Edenton, 
North Carolina. 

The operation involved in this application has been a partnership, and it is 
now the desire of the present owners to obtain new capital and convert the 
present partnership into a stock company and to transfer all the rights and 
privileges now set forth in Certificate No. 233 to the new corporation. 



206 N". C. Utilities Commission 

There is a case pending in Superior Court in the territory in which Habit 
Brothers operates, to compel performance in connection with an agreement 
which Habit Brothers are supposed to have had with the Virginia Dare 
Transportation Company to sell to it, but this case has not been concluded 
and for that reason the Attorney for the Virginia Dare Transportation 
Company requested an opportunity to be heard before this transfer is 
authorized. After conference with Mr. I. M. Bailey, representing the Virginia 
Dare Transportation Company, it was agreed that we would authorize the 
transfer, subject to the decision of the courts with reference thereto. The 
Attorney for the Virginia-Carolina Transportation Company was advised of 
this fact before final papers were signed for this transfer. 

It appears that the partnership, as well as the new corporation, has complied 
with all legal requirements with reference to this transfer and the transfer 
of the rights requested appear to be in the public interest, therefore, it is 

Ordered that the petition be granted, and that Certificate No. 233 be issued 
in the name of the Virginia-Carolina Transportation Company and that the 
old Certificate of the same number, outstanding in the name of John and 
Joe Habit, d/b/a Habit Brothers, be cancelled, and it is 

Further Ordered that this order shall become effective as of September 1, 
1939, or as soon thereafter as insurance has been filed to cover the equipment 
of the new company and tax settlement has been made by the vendor in this 
case, and such other compliance as may be required by law, and it is 

Further Ordered that if this order is inconsistent with the final judgment 
of the courts in the litigation hereinbefore referred to, that this entire order 
approving the transfer shall be rescinded. 

This the 25th day of August, 1939. 

Stanlet Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1655. 

APPLICATION OF HALL-HUDGINS TRUCK LINE FOR FRANCHISE CER- 
TIFICATE TO OPERATE FROM NORTH WILKESBORO TO HIGH POINT. 
DOCKET NO. 1792. (See C & S Motor Express Order. Docket No. 316.) 

APPLICATION OF MRS. ERSIE MIDGETTE, t/a HATTERAS-MANTEO 
BUS LINE, DOCKET NO. 1390 AND THE APPLICATION OF RUSSELL 
C. BAGETTE, DOCKET NO. 1384, BOTH FOR FRANCHISES TO OPER- 
ATE FROM HATTERAS TO MANTEO. 

Order 

This Cause arises upon the applications of R. C. Baggette and Mrs. Ersie 
Midgette to operate motor vehicles for the transportation of passengers from 
Hatteras, N. C. to Manteo, N. C. These applications are not made under 
Chapter 136, Public Laws of 1927 and amendments thereto, for the reason 
that there is no improved highway between Hatteras and Whalebone Filling 
Station, a point 3^ miles from Manteo, which is one of the termini of 
the proposed line. The applications are made under Chapter 455, Public Laws 



Decisions and Adjustments of Complaints 207 

of 1931, which requires that persons rendering a public service for compensa- 
tion, must first obtain a certificate of convenience and necessity for so doing. 

The proposed routes between Hatteras, N. C. and Manteo, N. C. is via 
Frisco, Buxton, Avon, Salvo, Rodanthe, Oregon Inlet and Whalebone Filling 
Station. There is no road maintained over this route, but vehicles travel over 
the sandy shores and this provides a very convenient way for the people 
going into and out of this section to travel. 

The above cases were heard on September 22, 1938, in the office of the 
Commission in Raleigh and evidence taken in behalf of both applicants. 
There was no protest filed except the protest of each applicant to the other. 
Such operation in any event must be an experiment and it is the policy of 
this Commission to permit such service to be rendered when and if it appears 
that it will meet the convenience of the public and be sufficiently profitable 
to permit the use of safe equipment. 

The weight of the evidence presented appears to be in behalf of Mrs. Ersie 
Midgette, t /a Hatteras-Manteo Bus Line, and it is thought that the granting 
of this application will redound to the convenience of the public more than the 
granting of the application of Mr. Baggette, and it is further evident that 
both cannot profitably operate bus service on this line, therefore it is 

Ordered that the application of Mrs. Ersie Midgette, t /a Hatteras-Manteo 
Bus Line, Docket 1390, be granted, and that certificate issue when the 
applicant otherwise complies with the statute made and provided in such 
cases, and it is 

Further, Ordered that the application of Russell C. Baggette, Docket No. 
1384, be denied. 

This twenty-ninth day of December, 1938. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Dockets Nos. 1384 and 1390. 

APPLICATION OF HELMS MOTOR EXPRESS FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS A MOTOR VEHICLE CARRIER FROM 
PITTSBORO TO ALBEMARLE VIA SILER CITY, ASHEBORO AND NEW 
LONDON. DOCKET NO. 1179. (See Capitol Transport Lines Order. Docket 
No. 1087.) 

APPLICATION OF S. A. AND H. L. HENNIS FREIGHT LINES OF MOUNT 
AIRY, NORTH CAROLINA FOR A RESTRICTED COMMON CARRIER 
FRANCHISE TO TRANSPORT LEAF TOBACCO AND ACCESSORIES 
USED IN HANDLING AND PACKING OF LEAF TOBACCO. 

Order 

This Cause arises upon the application of S. A. and H. L. Hennis Freight 
Lines of Mount Airy, N. C. for a franchise under Paragraph (t) of Section 1 
of the Motor Carrier Act to transport leaf tobacco packed in hogsheads, 
baskets or sheets; empty hogsheads, hogshead material and equipment and 
supplies used in the handling and packing of leaf tobacco. This application 
was filed with this office November 18, 1939 and set for hearing on March 29 



208 ~N. C. Utilities Commission 

and advertised in the press of the State in accordance with law, as well as 
notice being given to other carriers in the vicinity by letter. 

The case was heard as advertised and the applicant was represented by 
Norman Block, Attorney of Greensboro, North Carolina, who presented as a 
witness Mr. N. G. Correll, Traffic Manager of Reynolds Tobacco Company of 
Winston-Salem, N. C, who testified as to the public convenience and necessity 
of the service proposed and Mr. H. L. Hennis, the applicant, testified as to 
equipment and ability to render the proposed service. From the evidence of 
these witnesses, it is evident that this service will be in the interest of the 
public and is necessary to that industry in the territory proposed: 

The Motor Transit Company was represented by Mr. Sam Ruark, Attorney 
of Raleigh, N. C, but offered no protest after the application was amended so 
as to leave no doubt that the same was confined to the transportation of leaf 
tobacco packed in hogsheads, baskets or sheets; empty hogsheads, hogshead 
material and equipment and supplies used in the handling and packing of leaf 
tobacco, therefore, it is 

Ordered, that the petition be granted and that a restricted franchise cer- 
tificate be issued in accordance with this order when the applicant has com- 
plied with the law with reference to equipment specifications and insurance. 

This the eleventh day of April, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1752. 

JOINT APPLICATION OF HENSLEY MOTOR LINES OF ASHEVILLE, 
N. C, TO SELL FRANCHISE NO. 431 TO W. E. COLE. 

Order 
This Cause arises upon the application of Hensley Motor Lines to sell 
Franchise No. 431 to W. E. Cole. Hensley has just begun operating under his 
Franchise Certificate and W. E. Cole, who desires to purchase it has been in 
operation between Asheville and Hendersonville and other points for some 
time. The operation which Mr. Cole desires to purchase from Hensley Motor 
Lines is between Asheville and Spruce Pine, N. C. over Highway 19 via 
Burnsville. 

The Commissioner is familiar with both operators and is strongly of the 
opinion that the granting of this application is in the public interest, there- 
fore, it is 

Ordered that the petition be granted. 
This the twenty-fifth day of June, 1937. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 873. 



Decisions and Adjustments of Complaints 209 

APPLICATION W. F. TALLANT, d/b/a HICKORY BUS COMPANY, DOCK- 
ET NO. 1945; CITY BUS LINES, INC., DOCKET NO. 1950; QUEEN CITY 
COACH COMPANY, DOCKET NO. 1974. 

Order 

This Cause arises upon the applications in Docket No. 1945 and 1950 as 
outlined above, which were duly advertised in accordance with law for hear- 
ing and partially heard on May 3, 1940, at 10:00 o'clock in the office of 
the Commission in Raleigh and concluded as hereinafter appears. Docket No. 
1974, application of Queen City Coach Company for operation from Junction of 
unnumbered highway and N. C. 73 at Startown to Hickory, over unnumbered 
highway, was filed with this office on May 1, too late to be advertised in 
accordance with the statute, but the Queen City Coach Company was an 
intervener in the other cases named above. 

The applicant in Docket No. 1945, W. F. Tallant, d/b/a Hickory Bus Com- 
pany, was represented by Attorney Chas. W. Bagby of Hickory, N. C. Ap- 
plicant in Docket No. 1950, City Bus Lines, by Attorneys J. L. Murphy of 
Hickory and W. C. Feimster of Newton. The applicant in Docket No. 1974, 
the Queen City Coach Company, by Hon. R. Gregg Cherry of Gastonia and 
Mr. K. J. Kindley of Charlotte. 

At the conclusion of the first day, it being apparent that the hearing would 
last several days, it was agreed between counsel that a recess be taken until a 
later date. Motion was then made by the Hickory Bus Company for the ap- 
pointment of a Commissioner to take depositions in Hickory in order to 
forego the necessity of bringing numerous witnesses back to Raleigh. This 
motion was granted and Hon. Kemp Nixon was appointed Commissioner, and 
May 31 was set as the day on which to take such depositions with authority 
given to Judge Nixon to change the day if another date would be more con- 
venient to himself or witnesses. The depositions were duly taken and report 
made by Commissioner Nixon to this Commission with the depositions 
properly attached thereto. The Commission then set June 25, 1940 for the 
resumption of the hearing in Raleigh when and where all parties appeared 
and the hearing continued. 

Upon the resumption of the hearing on June 25, it was then made to appear 
that the petitioner, in Docket No. 1974, the Queen City Coach Company, had 
duly completed its advertisement and it having heretofore been permitted to 
intervene was then allowed, without objection, to have its application heard 
along with the other two applications. The hearing then continued, each ap- 
plicant offering testimony as found in the record. 

It appears from the record that the City of Hickory, in accordance with its 
charter, advertised for bids on a franchise to operate a bus line within its 
corporate limits and attached thereto some very unusual provisions. It received 
several bids, the highest of which being that of the applicant, W. F. Tallant, in 
Docket No. 1945, which it finally accepted, but at the time of this hearing the 
applicant had not begun to operate under the franchise purchased from the 
City. 

The routes over which the said Tallant seeks a franchise from this Com- 
mission, set out in Exhibit B attached to his application, dated March 22, 1940, 
are as follows: 

14 



210 N". C. Utilities Commission 

Route No. 1. Beginning at B. L. Marlowe Hosiery Mill, Route No. 1 
on old Shelby road; thence with old Shelby Road one and one-tenth 
miles north to Hollars Garage on Highway No. 70; thence east through 
Longview and Hickory on Highways Nos. 64 and 70 to Springs Road 
east of Hickory; thence with Springs Road to St. Stephens High 
School, which is one and three-tenths miles from city limits of 
Hickory, N. C. 

Route No. 2. Beginning on South side of Henry River near Brook- 
ford, N. C, thence north through Brookford on Highway No. 95 to 
10th Avenue, Hickory, N. C, thence east on 10th Avenue to 8th Street, 
thence north on 8th Street to 6th Street, thence east on 6th Street 
to 10th Avenue, thence along 10th Avenue to 2nd Street, thence 
northwest on 2nd Street to Highway No. 96; thence north on High- 
way No. 96 to Reitzels Grocery Store, which is 2 miles from the city 
limits of Hickory, N. C. 

Route No. 3. Beginning at Lake Hickory Beach, north side of Ca- 
tawba River on Highway No. 17 which is 2 miles from City limits, 
thence southeast on Highway No. 17 to 13th Avenue, thence east on 
13th Avenue to 12th Street, thence south on 12th Street to 8th 
Avenue, thence east on 8th Avenue to Old Lincolnton Road; thence 
with Old Lincolnton Road to St. Augustine Lutheran Church, which 
is one and seven-tenths miles from city limits of Hickory, N. C. 

The foregoing routes are extensions outside of the city of the routes granted 
to the said Tallant over the streets of Hickory. 

Upon a careful consideration of the record, in reference to the application of 
the said Tallant, it appears that the applicant has been far too liberal in his 
contract with the city for his proposed operation to be a financial success. He 
has agreed to pay to the City of Hickory 26^ per cent of his gross revenue 
received from intra-city passengers. In addition to this he will have to pay to 
the State 6 per cent of his gross revenue and added to this will be approxi- 
mately 8y 2 per cent of his gross revenue for compulsory insurance required by 
law, making a total of 4iy 2 per cent of his gross revenue which he will have to 
pay, together with city and county ad valorem taxes, unemployment and 
social security taxes, wages, allowance for depreciation and maintenance, 
possibly legal fees, et cetera, which in the opinion of this Commission will 
be too great a burden for the applicant to carry and provide proper service 
for the public. The Commission does not feel that it is justified in granting 
any franchise when it is obvious that the operation is doomed to failure from 
the beginning. It would not be fair to the applicant, nor would it be in the 
public interest. 

Section 2790 of the Consolidated Statutes gives to municipalities certain 
supervisory rights over municipally owned utilities and utilities holding 
franchises from municipalities one mile beyond the corporate limits, and this 
Commission has long made it a rule to permit the operation of such utilities 
not to exceed one mile beyond the municipal limits without obtaining any 
franchise from this Commission. The Commission has found that to give the 
municipalities this authority is much more satisfactory to this Commission, 
to the municipalities and to the public than where dual supervision is at- 
tempted to be exercised. Therefore, under this rule, the applicant, Hickory 



Decisions and Adjustments of Complaints 211 

Bus Company, will have the right to cooperate under its franchise from the 
City of Hickory one mile beyond the corporate limits in any direction desired 
without a franchise from this Commission. This Commission finds that no 
convenience and necessity has been shown for a further extension of the 
operation. 

As to Docket No. 1950, which is the application of the City Bus Lines, Inc., 
asking for franchise from the City of Hickory to various points, this Com- 
mission finds from the record that this applicant was an unsuccessful bidder 
of the inter-city franchise from the City of Hickory; that the principal owner 
and manager of this corporation, Mr. Bowman, has been operating for many 
years an intra-city as well as a suburban service to mills located a few miles 
from the corporate limits, and that his past operation has been as a contract 
and not as a common carrier. The Commission is of the opinion that the City 
Bus Lines, Inc., due to the years of service rendered the same territory over 
which it now seeks a franchise, has come nearer meeting the requirements 
for a finding of convenience and necessity than any of the applicants. In the 
past, however, it appears that the reason the City Bus Lines, Inc., and Mr. 
Bowman did not apply to this Commission for a franchise was because the 
revenue would not justify assuming the burdens of a franchise carrier. At 
that time this applicant was operating both within and without the City of 
Hickory, whereas now he has lost the city franchise and a considerable 
portion of the revenue, and it is, therefore, obvious that the revenue to be 
expected from without the city will be even more insufficient to carry the 
burdens imposed upon a franchise carrier. This Commission is, therefore, of 
the opinion that this applicant should continue to operate as a contract 
carrier. 

As to Docket No. 1974, which is the application of the Queen City Coach 
Company to operate over unnumbered highways from the junction of an 
unnumbered highway and N. C. No. 73 at Startown to Hickory, it is found 
from the record that the Queen City Coach Company already operates through 
the City of Hickory east and west, north and south, and maintains a large 
terminal in the City of Hickory for serving its patrons. If the applicant, Queen 
City Coach Company, were granted another franchise between Hickory and 
Newton, it would have to divert business from its present route to the route 
applied for. The Commission is of the opinion that public convenience and 
necessity has not been shown for the granting of this application and the fact 
that the Queen City Coach Company has already leased the route applied for 
to the City Bus Lines, Inc., in the event the franchise is granted (copy of 
which lease is filed with the Commission), is strongly indicative of the fact 
that the Queen City Coach Company does not desire to operate over the route 
applied for. 

This Commission is desirous of giving to the City of Hickory and the 
suburban sections such dependable bus service as is shown to be needed, but 
the applications herein considered, in the opinion of this Commission, would 
not provide such service, certainly not for any reasonable length of time. 



212 N". C. Utilities Commission 

Wherefore It Is Ordered, that each and all of the three applications 
Dockets Nos. 1945, 1950 and 1974 be and the same are hereby denied. 
This the 14th day of October, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Dockets Nos. 1945, 1950 and 1974. 

INDEPENDENCE BUS CORPORATION. PURCHASE OP CERTIFICATE 
NO. 451 AND ASSETS BY ATLANTIC GREYHOUND CORPORATION. 
DOCKET NO. 1459. (See Atlantic Greyhound Corporation. Docket No. 1459.) 

APPLICATION OF S. PORTER FULK, TRADING AS INDEPENDENT BUS 
LINE TO OPERATE AS MOTOR VEHICLE CARRIER FROM WINSTON- 
SALEM TO LEWISVILLE AND FROM WINSTON-SALEM TO KERNERS- 
VILLE. DOCKET No. 1368. 

APPLICATION OF LEWISVILLE-WINSTON-SALEM BUS LINE TO OPER- 
ATE AS MOTOR VEHICLE CARRIER FROM WINSTON-SALEM TO 
LEWISVILLE. DOCKET NO. 1226. 

Order 
Appearances: 

T. Winfield Blackwell, Jr., Winston-Salem, N. C. 

Attorney for Independent Bus Line. 

Harry L. Leake, Winston-Salem, N. C. 

Attorney for Lewisville-Winston-Salem Bus Line 

The foregoing applications came on for hearing and were heard by me, the 
undersigned Commissioner, on September 9, 1938, in the Hearing Room of 
the Utilities Commission in the City of Raleigh, North Carolina. 

By consent that part of the application of the Independent Bus Line ask- 
ing for franchise from Winston-Salem to Lewisville and the application of the 
Lewisville-Winston-Salem Bus Line were consolidated and heard together, for 
the reason that both of said applications asked for franchise over the same 
route. That part of the application of the Independent Bus Line asking for 
franchise from Winston-Salem to Kernersville was separately heard later the 
same day. 

It appears from the evidence adduced at the hearing that the Independent 
Bus Line has been for several years operating within the City of Winston- 
Salem and that it has a franchise from the City of Winston-Salem to the City 
limits, and that also it has been operating at times from the City limits to 
Lewisville, a distance of about 5% miles, and it is this operation from the 
City limits to Lewisville for which it now seeks a Certificate of Convenience 
and Necessity. 

It further appeared that the Lewisville-Winston-Salem Bus Line was owned 
by Mr. Marion Oliver, who had formerly been a driver for the Independent Bus 
Line. Mr. Oliver admitted that he had no franchise from the City of Winston- 
Salem; that he had never operated a bus line himself and that he owned no 



Decisions and Adjustments of Complaints 213 

busses but was of the opinion that if the franchise were given him he could 
arrange to purchase the necessary equipment. 

Many petitions and considerable testimony was offered by both applicants 
tending to prove the need for this service, from all of which the Commission 
finds as a fact that public convenience and necessity has been shown for the 
establishing of a bus line from the City limits of Winston-Salem over what is 
known as the Lewisville-Winston-Salem Highway to the Town of Lewisville, 
North Carolina. 

The Commission further finds that there is not sufficient business along 
this line for two operators and that since the Independent Bus Line already 
has a franchise within the City of Winston-Salem and equipment ready to 
render the service that it is now in a better position to give satisfactory 
service than Mr. Marion Oliver. 

Wherefore it is Ordered, that the application of the Independent Bus Line 
be granted and a Certificate issued upon compliance with the rules, regulations 
and requirements of this Commission. 

It is Further Ordered, that the application of the Lewisville-Winston- 
Salem Bus Line be and the same is hereby denied and dismissed. 

This the 30th day of January, 1939. 

Stanley Winborne, 

Commissioner. 

IN RE: THAT PART OF THE APPLICATION OF S. PORTER FULK, TRAD- 
ING AS INDEPENDENT BUS LINE, FOR A FRANCHISE CERTIFICATE 
TO OPERATE MOTOR VEHICLE PASSENGER LINE BETWEEN WIN- 
STON-SALEM AND KERNERSVILLE OVER HIGHWAY No. 703. 

Order 
Appearances: 

T. Winfield Blackwell, Jr., Winston-Salem, N. C, Attorney for Inde- 
pendent Bus Line, Petitioner. 
I. M. Bailey, Raleigh, N. C, Attorney for Atlantic Greyhound Corpora- 
tion. 

The hearing on this application followed the hearing on the applications of 
the Independent Bus Line and the Lewisville-Winston-Salem Bus Line herein- 
before passed on. 

Many petitions and much testimony were offered by the petitioner tending 
to show a need for this service between Winston-Salem and Kernersville in 
transporting people residing in the intermediate territory on Highway 703 
to and from the mills and factories in Kernersville and Winston-Salem. 

Much testimony was developed tending to show that there was already 
ample bus service over said Highway. It was not contended that there was 
need for further service between Winston-Salem and Kernersville, but that 
the need was for the service to intermediate points. 

The Commission finds as a fact that there are twenty-four daily schedules 
between Kernersville and Winston-Salem now given by the Atlantic Grey- 
hound Corporation, with an occasional additional schedule and that there are 
twelve of the twenty-four schedules operating between Winston-Salem and 
Kernersville over Highway 703. 



214 K". C. Utilities Commission 

As was suggested by all parties at the hearing, this Commission sent its 
Bus Inspector, J. C. Bowman, to make a full investigation of the number of 
employees residing along said route, who work in the mills in Kernersville 
and in Winston-Salem, to determine the real need for this additional service, 
and as a result of said investigation, a report has been made to the Commis- 
sion by the said J. C. Bowman that he found the present schedules operated 
by the Greyhound Corporation ample for the public needs and that there were 
not sufficient people residing along said Highway 703 and employed in the 
Kernersville and Winston-Salem mills and factories to justify the creation of 
another bus line. 

This Commission has always been inclined to grant franchises where it has 
been clearly shown that additional service is needed, and it has likewise been 
disinclined and has refused to grant additional franchises over the same 
route, which would jeopardize or lessen the service of the existing operator. 
It has been the experience of this Commission, without exception, that while 
competitive franchises between the same points over the same route may tem- 
porarily advantage the public, eventually the revenue becomes so thin by a 
division between the competitors that neither operator continues able to give 
the public first-class service. 

Wherefore, the application of the Independent Bus Line for a Certificate of 
Convenience and Necessity between Winston-Salem and Kernersville, over 
Highway 703 is denied and dismissed. 

This the 30th day of January, 1939. 

Stanley Winborne, 
Commissioner. 

Dockets Nos. 1226 and 1368. 

APPLICATION OP A. L. SHUFORD AND S. H. WARLICK, d/b/a INTER- 
CITY BUS LINE, CONOVER, FOR FRANCHISE CERTIFICATE TO OP- 
ERATE AS MOTOR VEHICLE CARRIER FROM NEWTON TO 
CONOVER. DOCKET No. 1626. 
And 

APPLICATION OF CONOVER-NEWTON BUS LINE FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM CON- 
OVER TO NEWTON VIA U. S. HIGHWAY 321 AND N. C. HIGHWAY 70. 
DOCKET No. 1634. 

Order 
The above captioned matters came on for hearing and were heard before 

me, the undersigned Utilities Commissioner, in the Hearing Room of the 

Utilities Commission in the City of Raleigh, North Carolina, on July 11, 1939. 

By consent the two applications were consolidated and heard at the same time. 

The Inter-City Bus Line was represented by W. J. Sherrod, Attorney, 

Newton, North Carolina. 
The Conover-Newton Bus Line by J. W. Rudisill, Attorney, Newton, 

N. C. 
The protestant, Queen City Coach Company, was represented by K. J. 

Kindley, Charlotte, North Carolina. 

At the outset it was stated by Mr. Kindley, for the Queen City Coach Com- 
pany, that his client would not resist either application, provided that if in 



Decisions and Adjustments of Complaints 215 

the granting of either application it was stipulated that the successful appli- 
cant would not extend its franchise route south beyond the square in Newton 
and north beyond the junction of U. S. Highway No. 321 and U. S. Highway 
No. 70 at Conover, nor either east or west of those points. Upon both appli- 
cants signifying their assent to said restrictions, Mr. Kindley announced that 
his company would not further protest the granting of either franchise. 

Both applicants offered numerous witnesses, petitions and letters from 
citizens residing in Newton, Conover and intermediate territory as to the 
need for such service; as to the financial ability of both applicants to provide 
proper equipment and satisfactory service; as to the sobriety and excellence of 
character of said applicants, et cetera, all of which is fully set out in the 
record in this cause. Much testimony was also adduced as to the population in 
Newton, Conover and intervening territory and as to the probable number of 
school children, factory employees and citizens generally who could reason- 
ably be relied upon to make use of the proposed interurban service. 

From all the evidence, the Commission has no difficulty in finding as a 
fact, and it does so find, that public convenience and necessity has been 
shown. The Commission is also convinced that the hourly schedules proposed, 
beginning at about 6 o'clock in the morning and continuing until about 10 
o'clock at night, is sufficient service to meet the demands of the public. 

The Commission has had, however, considerable difficulty in determining 
to which applicant the franchise should be awarded. There has been no case 
before this Commission, in which the writer has participated, where the con- 
tending applicants have been supported by evidence so nearly equal. Mr. 
A. L. Shuford and Mr. S. H. Warlick, who propose to trade as Inter-City 
Bus Line, are both young men of the highest character in the opinion of not 
only their own witnesses, but in the opinion of the witnesses who appeared 
for Mr. Arndt, who proposes to operate under the name of Conover-Newton 
Bus Line, also established an excellent reputation both by his own witnesses 
and the witnesses for the opposing applicant. All three of these young men, 
according to the testimony, are fully capable of providing the service and of 
financing it in a satisfactory manner. 

In view of the foregoing, the Commission has considered giving to each 
of the applicants a franchise alternating their schedules, but after taking 
into consideration the amount of business which may reasonably be expected 
between Conover and Newton, the conclusion has been reached that the 
revenue would be insufficient to enable two bus lines to provide proper equip- 
ment to give to the public first-class service. 

Upon a careful review and consideration of the entire record in the case, 
the Commission is of the opinion that between the two applicants there is at 
least a scintilla more of evidence in favor of granting the franchise to Mr. 
J. Allen Arndt, who proposes to operate under the name of Conover-Newton 
Bus Line. 

Whereeore it is Ordered, that the application of Messrs. A. L. Shuford and 
S. H. Warlick, d /b /a Inter-City Bus Line be and the same is hereby denied. 

And it is Further Ordered, that the application of Mr. J. Allen Arndt, 
operating as Conover-Newton Bus Line, be and the same is hereby granted, 
subject to the restrictions hereinbefore set out and agreed upon between the 
said applicant and the Queen City Coach Company. 



216 N". C. Utilities Commission 

And it is Further Ordered, that a Certificate be issued to Mr. J. Allen 
Arndt, d/b/a Conover-Newton Bus Line, upon the filing of a proper insurance 
policy with this Commission and the complying in all other respects with the 
usual requirements of the Commission. 
This the 30th day of August, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
Dockets Nos. 1626 and 1634. 

APPLICATION OF D. D. JONES TRANSFER AND WAREHOUSE, INC., 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER OF FREIGHT FROM RALEIGH TO THE N. C.-VIRGINIA 
STATE LINE, WARRENTON, MURFREESBORO, WINTON, SUNBURY. 
DOCKET No. 1814. (See Raleigh-Danville Motor Express Order, Docket 
No. 1616.) 

APPLICATION OF KANNAPOLIS MOTOR COACH COMPANY FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER. 
DOCKET No. 1772, 
And 

APPLICATION OF CAROLINA COACH COMPANY TO OPERATE AS 
MOTOR VEHICLE CARRIER. DOCKET No. 1938. 

Order 
This Cause arises upon the above applications. 

Docket No. 1772, the application of Kannapolis Motor Coach Company for 
franchise certificate to operate as motor vehicle carrier in and about 
Kannapolis as follows: 

"From North and South Main Street, North and South Ridge Avenue, 
North and South Cannon Blvd., or Route 29 — 6 miles. Center View Road 
from Cannon Blvd. East to South Main Street and Jackson Park Road; 
East from Jackson Park to North Main and Beth Page Road. East 1% 
miles to South Main Street, West First Street to Coddle Creek." 

Docket No. 1938, the application of Carolina Coach Company for franchise 
certificate to operate as motor vehicle carrier in and about Kannapolis as 
follows : 

"From Main-East Seventh-Lane Elwood-Venus-Cannon Blvd. -Ridge Ave. 
From Main-East F-Centerview-Center Grove Rd.-to Royal Oaks Develop- 
ment. From Main-West First-Elm-Eighth-No. Walnut-Eleventh-Kimball- 
Snipe-Main. From Main-Beth Page Rd." 

These cases were set for hearing on April 11, 1940, at 2:30 p.m. o'clock, 
advertised in accordance with law and heard as advertised. 

By consent of both applicants, the cases were consolidated and heard to- 
gether. 

The applicant, the Kannapolis Motor Coach Company, was represented by 
Attorneys I. M. Bailey and Wm. L. Wyatt, Jr., of Raleigh, and J. Carlyle 
Rutledge of Kannapolis. 

The applicant, Carolina Coach Company, was represented by Attorney Willis 
Smith of Raleigh. 



Decisions and Adjustments of Complaints 217 

The Kannapolis Motor Coach Company presented as its principal witness, 
Mr. D. M. Connell, who is to operate the bus line, but on account of illness, 
Mr. S. J. Flournoy, President and Secretary and Treasurer, was unable to be 
present, and it was agreed that his testimony would be taken at some future 
date. His testimony was taken May 23rd, from 2:00 to 2:30 p.m. o'clock. 

The attorney for the petitioner in Docket No. 1772 asked to amend the first 
application so as to make it read, "West First Street to Coddle Creek," and it 
was explained by the attorney for this applicant that the amendment was 
made to the application before advertisement. Evidence was presented to show 
that the Town of Kannapolis is an unincorporated town; that it is situated 
on the Southern Railway and that the largest industry there is the Cannon 
Manufacturing Company; that the residents of the community are scattered 
over a considerable area; that the center of the town is located at or about 
the junction of Highway 29, which runs in a general direction of North and 
South, and Highway No. 73 which runs East and West. 

The Carolina Coach Company owns a franchise on Highway No. 29 and 
No. 29A between Salisbury and Charlotte through Kannapolis and the 
Piedmont Coach Company holds franchise on Highway No. 73 between Albe- 
marle and Davidson. The Carolina Coach Company intervened to oppose this 
application as well as to advocate its own. 

A number of public witnesses were presented by the applicant in Docket 
No. 1772. Mr. D. M. Connell of the Kannapolis Motor Coach Company, who stated 
that his application covered Main Street North and South, from the center 
of the town which is First Street, two miles North and 2 1/10 miles South, 
and from West First Street one and a half miles from Main Street, out 
Coddle Creek Road, in addition to operating over streets within an area of 
approximately two miles from the center of town, all of which are outlined in 
the caption above; that they propose to operate at a cash fare of 7c or 4 
tokens for 25c or a pass card for $1.00 per week; school children 24 rides for 
$1.00; that there are approximately 15,000 employees in the mill; that there 
are from 23,000 to 25,000 inhabitants embraced in the territory and vicinity 
covered by the application; that from the estimate which had been made, that 
they would transport from 2,000 to 2,500 passengers per day. This testimony 
was corroborated by Witness Middleton, operator of a filling station, and by 
Witness Howell, employee of the Cannon Manufacturing Company. 

The first witness for the applicant, the Carolina Coach Company, in Docket 
No. 1938 was W. G. Humphrey, Traffic Manager, who stated that he prepared 
the application and filed it for the company, that he had applied for four 
routes; one would take in the Jackson Park Territory, another the Royal Oaks 
development, the Kimball Heights, and the Beth Page territory, which would 
serve the four sections of Kannapolis where there is the largest number of 
people available for transportation. He testified to the fact that his company 
had franchises over two streets North and South of Kannapolis and that it 
was necessary to maintain equipment there, and that it could render such 
East and West service as would be necessary and not encroach upon the 
franchise of the Piedmont Coach Company. 

The evidence of Witness R. R. Hawfield, O. Z. Price, F. B. Sullivan, R. C. 
Mitchen, F. A. Rogers, E. A. Sloop, L. O. Winecoff, Mrs. Cornelia Lippard, 
William F. Chisholm, Henry Nance, W. H. Austin, J. C. Tucker, all corroborate 



218 "N. C. Utilities Commission 

Mr. Humphrey's evidence, and stated that bus service was greatly needed in the 
town as proposed. 

The town of Kannapolis has been built up because of the cotton mill indus- 
try and the demand for transportation at shift time has been great, and the 
employees and operators of taxis for hire have provided this to a degree which 
is apparently satisfactory as the mill management and the mill employees 
do not desire that this condition be disturbed to the extent that any franchise 
carrier would seek to restrain the operations of the several hundred vehicles 
which supply transportation at shift time. It is thought that this would leave 
available for a separate bus transportation, school children, and non- 
employees of the mill, and since this is a new business, it is not known 
whether the same would be profitable, and it is noted from the evidence 
adduced and the conditions which exist that the Carolina Coach Company is in 
a better position to render any additional service in connection with its pres- 
ent through route, and if the service is undertaken and proved not to be re- 
munerative, the operation would cease without injury to anyone, because the 
Carolina Coach Company has other places where surplus equipment could be 
used to advantage. 

Furthermore, the Carolina Coach Company offers and promises to provide 
in connection with the intra-city schedules, additional schedules to China 
Grove and to Concord, thereby offering still greater conveniences to the 
public. 

Considering the two applications as a whole, the Commission finds that con- 
venience and necessity has been shown for the service within the City of 
Kannapolis and it is also of the opinion, and so finds, that the Carolina Coach 
Company is in a better position to provide the service which is required to 
best serve the needs of the public in Kannapolis. 

Wherefore it is Ordered: 

First. That the petition of the Kannapolis Motor Coach Company in 
Docket No. 1772 be and the same is hereby denied. 

Second. That the application of the Carolina Coach Company in Dock- 
et No. 1938 be granted and accepted upon the condition that 
no effort shall hereinafter be made by the Carolina Coach Com- 
pany to prevent by restraining order or otherwise the operation 
of the numerous taxicabs now serving the people of Kannapolis, 
or which may hereafter serve them. 

And it is further ordered that certificate shall be issued when the 
Carolina Coach Company has procured and has registered with 
this Commission new street-type buses to be used in Kannapolis. 

This the 1st day of October, 1940. 



(Signed) Stanley Winborne, 

Commissioner. 



By Order of the Commission: 

(Signed) R. 0. Self, Chief Clerk. 
(SEAL) 
Dockets Nos. 1772 and 1938. 



Decisions and Adjustments of Complaints 219 

APPLICATION OF C. A. LEA TRANSPORTATION COMPANY FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
BEGINNING WITHIN THE CORPORATE LIMITS OF THE CITY OF 
BURLINGTON AT THE INTERSECTION OF TROLLINGER STREET 
AND S. PARK AVE. VIA S. PARK AVE. TO HOKE ST. ; THENCE ALONG 
HOKE ST. TO W. FRONT ST. ; THENCE ALONG FRONT ST. TO SPRING 
ST.; THENCE ALONG SPRING ST. FROM E. FRONT ST. TO DAVIS 
ST.; THENCE ALONG DAVIS ST. TO ANTHONY ST., VIA ANTHONY 
ST. TO WEBB AVENUE; THENCE ALONG ANTHONY ST., TO 
CORPORATE LIMITS OF CITY OF BURLINGTON AND BEYOND 
SAID CORPORATE LIMITS ALONG ANTHONY ST. TO QUEEN ANNE 
ST. IN BURLINGTON MILLS SECTION; THENCE ALONG QUEEN ANNE 
ST. TO GRAHAM ST.; THENCE ALONG GRAHAM ST. TO BEAUMONT 
AVE. VIA BEAUMONT AVENUE TO MIDWAY AVE. ; THENCE ON MID- 
WAY AVE. TO HOPEDALE RD.; THENCE ALONG GRAHAM AND 
HOPEDALE RD. TO CORPORATE LIMITS OF TOWN OF GRAHAM AND 
GRAHAM DEPOT; THENCE ALONG WASHINGTON ST. TO PROVI- 
DENCE ST. ; VIA PROVIDENCE ST. AND N. MAIN ST. TO COURTHOUSE 
IN GRAHAM, N. C, AND RETURN. 

Order 

This Cause arises upon the application of C. A. Lee Transportation Com- 
pany of Burlington, North Carolina, for Franchise Certificate to Operate 
Motor Vehicles for the transportation of passengers over the route that 
would be traversed beginning within the corporate limits of the City of 
Burlington at the intersection of Trollinger Street and S. Park Avenue and 
runs via S. Park Avenue to Hoke Street thence along Hoke Street to W. Front 
Street (alternately with every other bus such route runs from said begin- 
ning point via Trollinger Street to W. Front Street and thence along W. 
Front Street to Hoke Street) converging at such point and the route runs 
thence along Front Street to Spring Street thence along Spring Street from 
E. Front Street to Davis Street and thence along Davis Street to Anthony 
Street and via Anthony Street to Webb Avenue (alternately with every other 
bus the route is from the intersection of Spring Street and E. Front Street 
via Spring Street and Webb Avenue to the intersection of Webb Avenue with 
Anthony Street) converging at such point and the route runs thence along 
Anthony Street to the corporate limits of the City of Burlington and beyond 
said corporate limits along Anthony Street to Queen Anne Street in Burling- 
ton Mills Section; thence along Queen Anne Street to Graham Street in said 
Burlington Mills Section; thence along Graham Street to Beaumont Avenue 
and via Beaumont Avenue to Midway Avenue and thence on Midway Avenue 
to its intersection with the Graham and Hopedale Road; thence along the 
Graham and Hopedale Road to the Corporate limits of the Town of Graham 
and Graham Depot; thence along Washington Street to Providence Street 
and via Providence Street and North Main Street to the Courthouse in Gra- 
ham, N. C. 

This application was advertised according to law and the Carolina Coach 
Company which operates through the said City of Burlington was represented 
by Mr. W. G. Humphrey, who stated that they had no objections to the pro- 
posed operation. 



220 DST. C. Utilities Commission 

The applicant presented witnesses to show that the operation is needed and 
would afford the suburbs as well as the cities of Burlington and Graham 
the bus service which they need to and from the several mill villages into the 
cities mentioned. From all the evidence presented it is found that the pro- 
posed operation is in the public interest and is necessary for the convenience 
of the people in the section it serves, therefore it is 

Ordered that the petition be granted and that certificate issue when and if 
the applicant has otherwise complied with the law by filing equipment specifi- 
cation and insurance. 

This first day of March, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 1479. 

APPLICATION OF LEWISVILLE-WINSTON-SALEM BUS LINE FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM WINSTON-SALEM TO LEWISVILLE. DOCKET No. 1226. 
(See Independent Bus Line Order. Docket No. 1368.) 

APPLICATION OF LOWTHER TRUCKING COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
CHARLOTTE TO ELKIN VIA MOUNT AIRY. DOCKET No. 1577. (See 
S. & E. Trucking Company Order. Docket No. 1495.) 

PETITION OF LOWTHER TRUCKING COMPANY TO PURCHASE THE 
OPERATING RIGHTS OF S. & E. TRANSFER COMPANY. 

Order 

This Cause arises upon the petition of Lowther Trucking Company to pur- 
chase the operating rights of S. & E. Transfer Company. S. & E. Transfer 
Company is holder of Certificate No. 481, and the petitioner, the Lowther 
Trucking Company, is holder of Certificate No. 480, and the application for 
acquisition is based on the fact that the operating rights of both carriers are 
so located that the petitioner can render the service to the patrons along the 
highway over which the S. & E. Transfer Company operates at much less cost 
than the S. & E. Transfer Company can. 

After full investigation, it is found that the granting of this application is in 
the interest of convenience and necessity, and therefore it is 

Ordered, That the petition be granted, and that the S. & E. Transfer Com- 
pany's Certificate No. 481 be cancelled, and that the rights contained therein 
be transferred to the petitioner, Lowther Trucking Company, as follows: 

"1. Statesville to Elkin over U. S. Highway No. 21; Elkin to Mt. Airy over 
N. C. Hy. No. 268 and U. S. Hy. No. 601; Mt. Airy to Mocksville over 
U. S. Hy. No. 601 and Mocksville to Statesville over U. S. Hy. 64, without 
pick-up in Statesville for Charlotte. 



Decisions and Adjustments of Complaints 221 

"2. From Mocksville over N. C. Hy. No. 601 to Junction of Nos. 601 and 801; 
thence over 801 to Cooleemee with the reservation made for other 
carriers having operating rights into and through Mocksville to use 
Cooleemee as an off route point." 

Granted the twenty-second day of May, 1940. 
Written Nov. 9, 1940. 

R. O. Self, 
Utilities Commissioner. 
By Order of the Commissioner: (R) 

R. O. Self, Chief Clerk. 
Docket No. 198. 

MOTION TO DENY APPROVAL OF THE PURCHASE BY B. P. JONES OF 
THE M. & M. MOTOR EXPRESS COMPANY'S FRANCHISE OVER HIGH- 
WAY 18 BETWEEN NORTH WILKESBORO AND LENOIR. 

Order 

This Cause arises upon motion filed by Mr. Norman Block, Attorney for 
Smith's Transfer Company protesting the transfer by M. & M. Motor Express 
to B. P. Jones of franchise over State Highway No. 18 because of non-use by 
the M. & M. Motor Express during the life of the said franchise over said route. 

M. B. and C. C. McNeil with their attorneys came to this office with B. P. 
Jones in order to ascertain just what rights the McNeils had in their fran- 
chise and to ascertain whether or not it could be sold to Mr. Jones. After an 
examination of the records in this office Mr. Jones was advised what high- 
ways were included in the M. & M. Motor Express franchise. Mr. Jones asked 
if he could arrive at an agreed price with the McNeils, would the Commission 
transfer to him the M. & M. Motor Express franchise. He was advised in the 
affirmative, and in due course the transfer was made. Opposition to the trans- 
fer was filed by Mr. Norman Block, Attorney, for Smith's Transfer Company 
of Lenoir, protesting the approval of sale and transfer on the ground that the 
M. & M. Motor Express had not operated over Highway No. 18 between North 
Wilkesboro and Lenoir. The protestants were advised that it would be set 
down for hearing in order to give both interests an opportunity to prepare 
whatever evidence they had in substantiation of their contentions. It was set 
for hearing and notices issued to the parties in accordance with the statute 
and was heard on September 28, 1938, at 10:00 a.m. in the office of the 
Commission in Raleigh, at which time the protestants, Smith's Transfer Com- 
pany, were represented by Attorney B. F. Williams of Lenoir and the re- 
spondents by Attorney J. Allie Hayes of North Wilkesboro. 

The portion of the Certificate in controversy between Lenoir and North 
Wilkesboro over Highway 18 was granted to M. & M. Motor Express on 
July 14, 1937. The M. & M. Motor Express, respondents herein, produced copies 
of freight receipts in support of their testimony that they had handled ship- 
ments regularly between July 24th and November 20th over the route in 
question. The moving party offered affidavits from patrolmen, policemen and 
other local persons, to the effect that they had no knowledge of nor had they 
seen any trucks of the M. & M. Motor Express operating from Lenoir to 
North Wilkesboro. Mr. C. H. Smith, of the Smith Transfer Company, was 
present at the hearing but did not testiry. 



222 N". C. Utilities Commission 

The affidavits above referred to offered by the moving party constitute only 
negative evidence and are made by persons not charged with the duty of ob- 
serving the nature or extent of the operations of any carrier, and therefore can 
not be accepted by the Commission in refutation of the affirmative testimony 
offered by the respondents, supported by the freight bills. 

Wherefore the Motion to cancel that part of the Certificate purchased by 
B. P. Jones from the M. & M. Motor Express Company authorizing the opera- 
tion over Highway 18 between Lenoir and North Wilkesboro is dismissed. 
This the 7th day of November, 1938. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 
By Order of the Commission: 

R. O. Self, Chief Clerk. 
Docket No. 1181. 

PETITION OF B. P. JONES, DOING BUSINESS AS M. & M. MOTOR EX- 
PRESS, WITH HEADQUARTERS AT CHARLOTTE, N. C, APPLYING 
FOR A FRANCHISE ROUTE TO OPERATE TRUCK LINE BETWEEN 
TAYLORSVILLE AND LENOIR, N. C, OVER HIGHWAYS Nos. 90 
AND 18. 

Order 
This Cause arises upon the application of B. P. Jones, doing business as 
M. & M. Motor Express, for franchise rights to operate freight and express 
trucks between the Towns of Taylorsville and Lenoir, N. C, over Highways 
Nos. 90 and 18. 

The M. & M. Motor Express operates out of North Wilkesboro by Taylors- 
ville, Claremont and Newton, over Highways Nos. 16, 73 and 271 to Charlotte. 
This line was granted to the M. & M. Motor Express prior to its acquisition 
by B. P. Jones. In purchasing the M. & M. Motor Express, Mr. Jones also 
acquired the franchise rights over Route 18 from Moravian Falls to Lenoir. 

The granting of this application would put the M. & M. Motor Express 
in direct competition with the Smith's Transfer Company at Lenoir, and 
judging from the evidence presented in this case it appears that that section 
of the state has about all the motor freight lines it is able to support, and 
certainly the lines in operation in that section are already sufficiently com- 
peting with each other, and any further competition between these lines, I 
believe will not be in the interest of the public. 

Therefore it is Ordered, That the petition be denied. 

This the 7th day of December, 1938. 

Stanley Winborne, 

Commissioner. 
By Order of the Commission: 

R. O. Self, Chief Clerk. 
Docket No. 1255. 



Decisions and Adjustments of Complaints 223 

APPLICATION OF MoLEOD'S TRANSFER, INCORPORATED, FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
FROM SANFORD OVER U. S. HIGHWAY 1 TO CARTHAGE; THENCE 
OVER STATE HIGHWAY No. 27 TO INTERSECTION OF STATE HIGH- 
WAY No. 22; THENCE OVER STATE HIGHWAY No. 22 TO THE INTER- 
SECTION OF U. S. HIGHWAY 421 VIA HALLISON, HIGH FALLS, COLE- 
RIDGE, RAMSEUR, FRANKLINVILLE AND CLIMAX; THENCE OVER 
421 TO GREENSBORO. 

Order 

This Cause arises upon the above application. The applicant was represented 
by Mr. Neil Ross of Lillington, North Carolina. The Motor Transit Company 
of Raleigh and Helms Motor Express of Albemarle protested the granting of 
the application. Mr. R. S. Koonce represented the Motor Transit Company 
and Mr. A. D. Burton represented the Helms Motor Express. 

The applicant presented evidence to the effect that he now holds a certifi- 
cate from this Commission to operate from Wilmington to Sanford over 
U. S. Highway No. 117, Wilmington to Castle Hayne; thence over U. S. 
Highway 421 to Sanford via Clinton, Dunn, Lillington and Broadway, North 
Carolina, his residence. 

The applicant presented evidence to show that he desires to give daily 
service over the route applied for and that his principal business would be to 
extend the service which he now gives between Wilmington and Sanford 
to points between Sanford and Greensboro over the route specified, and it is 
thought that he conclusively showed convenience and necessity for that 
service because of the fact that the points which he proposes to serve 
have no rail service nor other common carrier transportation facility, and 
since the carrier has been operating for a number of years, it is thought best 
to not deprive his customers of that service. 

The protestant, Motor Transit Company, operates parallel with this pro- 
posed line on both sides and serves both Franklinville and Ramseur, which 
are proposed to be served by applicant, but since the principal business of 
applicant is service out of Wilmington and the principal service of the 
Motor Transit Company is from points more adjacent to these points, it is 
thought that the competition caused would be minimum. 

The protestant, Helms Motor Express, protested specifically to the duplica- 
tion of the service between Sanford and the intersection of Highways 27 and 
22 west of Carthage, but it is doubtful if applicant will compete over this line 
in any quantity because of the shortness of the distance between these two 
points over Helms' Motor Express line. 

It appears from the record in this case that the granting of this application 
with limitations between Sanford and Carthage and between Sanford and 
Greensboro will enhance the public convenience and necessity in the territory 
affected, therefore, it is 

Ordered, That the petition be granted with the proviso that no pick-ups 
shall be made in Sanford for Carthage; nor in Carthage for Sanford; nor in 
Greensboro for Sanford; nor in Sanford for Greensboro, limited to exclusive 



224 ~N. C. Utilities Commission 

intrastate movement; and that Certificate No. 285 be amended after the expira- 
tion of ten days to include the rights granted herein. 
This the eighteenth day of July, 1940. 

Stanley Wlnborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
(SEAL) 
Docket No. 1565. 

TRANSFER TO SPENCER MILLER OF OPERATING RIGHTS OF FRAN- 
CHISE CERTIFICATES Nos. 435 AND 334 IN THE NAME OF SMITH'S 
TRANSFER COMPANY. DOCKET No. 958. (See Smith's Transfer Com- 
pany Order, Docket No. 958.) 

APPLICATION OF MOTOR TRANSIT COMPANY FOR AUTHORITY TO 
OPERATE AS MOTOR VEHICLE CARRIER, 1st, FROM NELSON TO 
GRAHAM OVER HIGHWAY No. 54; 2nd, FROM DURHAM TO INTERSEC- 
TION OF 54 OVER HIGHWAY No. 55, AND 3rd, BETWEEN SANFORD 
AND CARTHAGE AND BETWEEN SANFORD AND ABERDEEN. 

Order 
This Case came before the Commission for hearing and was heard before the 
undersigned Commissioner sitting alone on the 7th day of July, 1938. 

Mr. Norman Block of Greensboro appeared for the applicant. 

Mr. I. M. Bailey appeared for Helms Motor Express, opposing the granting 

of the application. 
Mr. B. M. Clark, of the Chapel Hill-Durham Freight Line appeared in 

opposition to the granting of the franchise from Durham to intersection 

of Highway No. 54. 

Notice of the application and hearing was duly advertised. 

At the outset Mr. Block, attorney for the applicant, stated that his client 
would take a voluntary non-suit as to that portion of the application which 
relates to the correction of the franchise of the Motor Transit Company, 
Certificate No. 292, asking for franchise rights between Sanford and Carthage 
and between Sanford and Aberdeen. 

Mr. Bailey, attorney for Helms Motor Express, then made the following 
statement: 

Mr. Commissioner, in view of the withdrawal of the application for 
correction and the franchise which they are seeking, it has been agreed 
between the Motor Transit Co., the applicant, and the Helms Motor Express 
that Motor Transit Co. will not pick up and deliver freight originating at 
Durham for either Chapel Hill or Carrboro or originating at Carrboro or 
Chapel Hill destined for Durham and that Motor Transit Co. will not in the 
future seek to establish such service by purchase of franchise or otherwise 
and that Helms Motor Co. if at any time in the future it decides to sell 
or dispose of their franchise between Chapel Hill and Durham will give 
Motor Transit Co. the opportunity, thirty days, within which to refuse to 
purchase at such price as may be offered to Helms Motor Express for that 
portion of the franchise. Notice of offer to sell or intention to sell shall be 
given by Helms Motor Express to Motor Transit Co. by registered mail 
and acceptance or rejection shall be given by Motor Transit Co. to 
Helms Motor Express by registered mail within the period above specified. 



Decisions and Adjustments of Complaints 225 

It is further stipulated between the applicant and Helms Motor Express 
that the order of the Commission in this docket shall include this as a 
condition precedent to the granting of the certificate between Nelson and 
Graham over Highway 54 and from Durham down Highway 55 to its 
junction with 54. With this stipulation and agreement then the Helms 
Motor Express offers no further objection to the granting of the franchise 
to Motor Transit Co. 

Mr. Clark still objected to the granting of the franchise, contending that it 
would create a competitive service between Durham and Chapel Hill with his 
line. However, Mr. Clark since the hearing has sold and assigned his franchise 
certificate, with the approval of this Commission, to the Helms Motor Express. 

Wherefore it is Ordered, that a franchise certificate be issued to the Motor 
Transit Co. to operate as motor vehicle carrier from Nelson to Graham over 
Highway No. 54 and from Durham to intersection of Highway 54 over High- 
way 55, upon a compliance by the applicant with the rules and regulations of 
this Commission. 

It is Further Ordered, that said franchise certificate when issued shall bear 
the notation that it is issued subject to the conditions stated in this order 
authorizing same. 

This the 23rd day of June, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1259. 

APPLICATION OF WILBER NELSON FOR CERTIFICATE OF CONVE- 
NIENCE AND NECESSITY TO TRANSPORT PASSENGERS AND 
FREIGHT BY BOAT BETWEEN ATLANTIC AND OCRACOKE. 

Order 
(Commissioner Winborne being in Washington on official business at the 
time this case arose for hearing, it was by consent of all parties present that 
the hearing be held by R. 0. Self, Chief Clerk, as examiner, under Section 9 of 
Chapter 134, Public Laws of 1933.) 

This Cause arises upon the application of Wilber Nelson for Certificate 
of Convenience and Necessity to transport by boat passengers and express 
between the towns of Atlantic and Ocracoke. It was set for hearing on July 
27th at 2:30 p.m., and notice of the time and place of hearing was published in 
the press in accordance with law. It was heard as advertised and present at 
said hearing were the applicant, Wilber Nelson, and Mr. Graham Duncan, 
the applicant's attorney. In opposition appeared Mr. W. G. Willis and his 
attorney, Mr. Alvah Hamilton. 

From the evidence it appears that the applicant has been operating a boat 
regularly between the towns named for the past two years; that he has a 
contract to carry the mail and transports passengers and freight on the mail 
boat, and from information obtained upon investigation since the hearing, it 
appears that his annual revenue, exclusive of that received for carrying mail is 
approximately $1,600.00. There is no way of determining a division of this 
revenue between passenger and freight service. He receives $1,863.00 per 

15 



N". C. Utilities Commission 

annum for carrying mail, but since this, from time to time, is re-let on com- 
petitive bids, the revenue received therefrom cannot be given much weight 
in considering convenience and necessity for the reason that there is no assur- 
ance that the applicant will obtain the contract at the next bidding. 

The respondent, Mr. W. G. Willis, testified that he had operated across the 
Pamlico Sound between these towns for twenty-four years; that he carried 
the mail prior to Mr. Nelson's underbidding him, but since he lost the mail 
contract has continued to operate about three trips per week, except in summer 
when he operated regularly; that he runs a store in Ocracoke and uses his boat 
largely for transporting his own goods, but carries passengers and freight for 
others. Mr. Willis filed rates with the Commission several years ago and it 
appears from the evidence, and investigation since, that his annual revenue 
from freight operation approximates $1,145.28. Total annual passenger reve- 
nue not available. 

There is evidence that Mr. Nelson and a partner purchased a boat from 
Mr. Willis about the time Mr. Willis lost the mail contract, but Mr. Nelson 
and his partner dissolved partnership shortly thereafter, and the partner took 
the Willis boat as a part of his assets in the division and Mr. Willis had to 
repossess the boat for non-payment, and then Mr. Willis let a relative begin 
operating it again between the same points on approximately the same sched- 
ule. It is not exactly clear from the evidence whether the acquisition of this 
boat by Mr. Nelson would clear the controversy for the reason that Mr. 
Nelson stated that Mr. Willis had other boats. Mr. Willis was asked if he 
would be satisfied if Mr. Nelson would pay him the original purchase price and 
take the boat. Mr. Willis stated that he would let him have the boat on such 
terms. 

The applicant states that the cost of operating a round trip on the proposed 
line is $6.00, but in the absence of full evidence as to what this includes 
it appears from the operating experience of both carriers, that there is suffi- 
cient business between these points to amply compensate its regular operation. 
The business is appreciably better between June 1st, and September 1st, but 
Ocracoke is to a great extent isolated without regular service over this route. 
Traffic from Ocracoke originally to Beaufort and Morehead, and to Atlantic 
since the extension of Highway No. 70, has been built up by Mr. Willis' 
and his predecessors' many years of dependable operation, and especially since 
it connects at Atlantic with the Seashore Transportation Company's fast pas- 
senger and express service for points inland. Without a doubt, a reliable 
service between Atlantic over 30 miles of water to Ocracoke is a necessity 
and since this service has been built up by the carrier who has carried the 
mail, it may be necessary to have revenue from that source in order to 
give a daily, except Sunday, service. 

This application is made under C. S. 1112(b) sub. paragraph (1) which gives 
the Utilities Commissioner jurisdiction over "persons, firms, or corporations 
engaged in carrying of freight or passengers or otherwise engaged as com- 
mon carriers," and C. S. 1037(e) which requires "a Certificate of Public Con- 
venience and Necessity" before beginning operation. 

Under the statutes referred to above there is ample authority for taking 
full and complete jurisdiction in this case and the granting or denying the 



Decisions and Adjustments of Complaints 227 

certificate sought as the evidence may justify, but it is not thought that a 
certificate granted in this case should be exclusive for the reason that Mr. 
Willis was a carrier with approved rates under this Commission prior to the 
passage of C. S. 1037(e), therefore, he evidently has "grandfather" rights 
under the law and should be permitted to exercise same if he so chooses, but 
this exercise of rights should be by him and not by a delegated authority 
except by and with the consent of this Commission and then the operation must 
be actual and not potential, — that is, some regular service that may be adver- 
tised and known to the public and not intermittent, unless his loss of mail 
will not permit such service, then he may file with this Commission his inten- 
tion to give a less service, or abandon it altogether, therefore it is 

Recommended, that order be issued, finding convenience and public necessity 
in this case and granting the authority sought and that the applicant be 
required to file rates for approval, and it is 

Further Recommended, since Mr. Willis, the respondent in this case, is 
not an applicant before the Commission, at the same time, he is under its juris- 
diction by virtue of his previous, as well as present operation, that he be per- 
mitted to re-file his rates and re-declare the frequency of service which he 
desires to render, and it is 

Further Recommended, that the question of Marine Insurance be investi- 
gated with a view to requiring each carrier to properly indemnify passengers 
and cargo and to this end require both carriers to report within 30 days what 
insurance is now carried, or if none is carried at present, to show cause, if 
any cause they have, why Public Liability and Property Damage Insurance 
should not be carried. 

This November third, 1938. 

R. O. Self, 
Examiner. 

The foregoing opinion is hereby concurred in and adopted and the recom- 
mendations are hereby ordered effective of even date hereof. 

This November third, 1938. 

Stanley Winborne, 
Utilities Commissioner. 
(SEAL) 

Docket No. 1328. 



228 1ST. C. Utilities Commission 

APPLICATION OF NORFOLK SOUTHERN BUS CORPORATION FOR 
FRANCHISE CERTIFICATE TO OPERATE MOTOR VEHICLES IN THE 
TRANSPORTATION OF PASSENGERS, BAGGAGE, EXPRESS, MAIL 
AND NEWSPAPERS IN THE SAME VEHICLE WITH PASSENGERS 
OVER THE REGULAR ROUTES BETWEEN FIXED TERMINI AND TO 
AND FROM INTERMEDIATE AND OFF-ROUTE POINTS AS FOLLOWS: 

BETWEEN EDENTON, N. C, AND WASHINGTON, N. C: 

FROM EDENTON OVER U. S. HIGHWAY 17 TO JUNCTION N. C. HIGH- 
WAY 172, THENCE OVER N. C. HIGHWAY 172 TO JUNC. U. S. HIGH- 
WAY 64. (ALSO FROM EDENTON OVER UNNUMBERED HIGHWAY TO 
N. C. HIGHWAY 172 TO JUNC. U. S. HIGHWAY 64), THENCE OVER 
U. S. 64 TO JUNC. N. C. 97, THENCE OVER N. C. 97 TO JUNC. N. C. 
99, THENCE OVER N. C. 99 TO JUNC. U. S. 264, THENCE OVER U. S. 
HIGHWAY 264 TO WASHINGTON, AND RETURN OVER SAME ROUTE. 
ALL INTERMEDIATE POINTS AND PINETOWN AND BEASLEY, N. C, 
OFF-ROUTE POINTS. 

Order 
This Cause arises upon the application of the Norfolk Southern Bus Cor- 
poration for a certificate to operate over the routes outlined in the above 
caption. The application was duly advertised and the hearing was held on 
November 10, 1938, at 10:00 o'clock a.m. in the office of the Utilities Commis- 
sioner in Raleigh. All interested parties were given notice of said hearing, and 
Mrs. S. M. Gibbs, owner of Engelhard-Washington Bus Line, appeared to make 
sure that the applicant did not propose to operate in a manner that would 
injure her operation between Washington and Pantego, but when she was 
assured that this was not intended by the applicant, opposition was withdrawn 
by her. 

The Habit Bros. Freight Line appeared and made opposition to operation 
across the bridge at Mackeys Ferry, but inasmuch as the Norfolk Southern 
Bus Corporation already operates parallel to the shore of Albemarle Sound 
between Williamston and Columbia, it is thought that the right to operate over 
Highway No. 172 across the Sound will very much enhance the public con- 
venience in that vicinity. 

Mr. W. A. Everette, d /b/a Edenton Mackeys Ferry Bus Company appeared 
in opposition to this application, and in favor of his own application in which 
order has already been made and denied, for the operation south of the Sound 
in the transportation of passengers, for the reason that this territory along 
Highway 64 has already been preempted by the Norfolk Southern Bus Cor- 
poration for some long while. 

Since the hearing of this application on the intrastate operating rights, the 
Interstate Commerce Commission has granted the application of the applicant 
for interstate rights over the highways mentioned herein, and this Commission 
sat in that case and recommended that it be granted by the Interstate Com- 
merce Commission, therefore, it is 

Ordered that the application in Docket No. 1235 be granted and that Certifi- 
cate No. 308, now held by the Norfolk Southern Bus Corporation, be amended 
upon presentation to include the highways applied for in said Docket No. 



Decisions and Adjustments of Complaints 229 

1235, and that operation therein begin not to exceed thirty (30) days after 
the issuance of this order. 

This the twenty-eighth day of July, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1235. 

APPLICATION OF NORFOLK SOUTHERN BUS CORPORATION FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER OF FREIGHT AND EXPRESS FROM NEW BERN TO BRIDGETON 
OVER STATE HIGHWAY No. 17, THENCE VIA HIGHWAY 302 TO 
ORIENTAL. DOCKET No. 1534, 
And 
APPLICATION OF CAPITAL COAST EXPRESS TO OPERATE AS MOTOR 
VEHICLE CARRIER FROM NEW BERN, N. C, OVER STATE HIGH- 
WAY No. 302 TO BAYBORO, VANDEMERE, ORIENTAL, MINNESOTT 
BEACH, AURORA, CHOCOWINITY AND WASHINGTON, N. C, OVER 
HIGHWAYS Nos. 33, 302, 304, 306 AND U. S. 17. DOCKET No. 1518. 

Order 
This Cause arises upon the applications specified above which were set for 
hearing at 11:00 a.m. o'clock on March 17, 1939. The cases were consolidated 
and heard together. Evidence was presented to show that both applicants had 
advertised the applications and hearing. 

The Norfolk Southern Bus Corporation presented evidence that it desired 
to give service through the territory applied for because the railroad service 
was not satisfactory to the people who live along the line mentioned in the 
applications and the business in that vicinity was not sufficient to warrant the 
operation of additional trains, and it proposed to give daily service by truck 
in lieu of tri-weekly service by rail. 

The Capital Coast Express Company's representative stated that its interest 
in making application was to deliver business into that section which origi- 
nates west of New Bern, and it. would withdraw its application in favor 
of the Norfolk Southern Bus Corporation, if the Norfolk Southern Bus Cor- 
poration would render the service applied for. This was agreed upon in open 
meeting with the Commissioner and it was stated that the application of the 
Norfolk Southern Bus Corporation would be granted, therefore, it appears that 
the granting of the Norfolk Southern Bus Corporation's application is in the 
interest of public convenience and necessity, therefore, it is 

Ordered that the application in Docket No. 1534 be granted, and that certifi- 
cate No. 308 be amended to include the transportation of freight, light express, 
mail and newspapers, and that operation therein begin not to exceed thirty 
days (30) after the issuance of this order. 
This the twenty-eighth day of July, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Dockets Nos. 1518 and 1534, 



230 N". C. Utilities Commission 

PURCHASE BY NORFOLK-SOUTHERN BUS CORPORATION FROM VIR- 
GINIA DARE TRANSPORTATION COMPANY OF CERTAIN CERTIFI- 
CATE RIGHTS FOR THE TRANSPORTATION OF FREIGHT AND 
EXPRESS. 

Order 
Whereas as agreement was entered into on the 12th day of September, 1936, 
by and between Norfolk-Southern Bus Corporation and Virginia Dare Trans- 
portation Company for the sale of certain rights held by the Virginia Dare 
Transportation Company under Franchise Certificate No. 342, as follows: 
"All of the certificates of public convenience and necessity, rights, privi- 
leges, franchises, permits, business and good will of the Virginia Dare 
Transportation Company to operate as a common carrier of property by 
motor vehicle between Norfolk and Sliga, and between Sligo and Elizabeth 
City." 

and the final order having been made in this matter by the Interstate Com- 
merce Commission on August 3, 1938, and application having been made to this 
Commission on March 29, 1940, and the application having been found 
regular, in due form and in accordance with the law and the Commission's 
Rules and Regulations, and it being further found that the granting of this 
application will enhance public convenience and necessity, it is 

Ordered, that the petition be granted and that the certificates of the carriers 
parties thereto be amended upon presentation to conform thereto. 

This March 29, 1940. 

(S) Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
(S) R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1951. 

APPLICATION OF NORFOLK SOUTHERN BUS CORPORATION FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM L. & H. FORKS AND WASHINGTON, N. C, VIA HIGH- 
WAYS Nos. 17, 64, 99, 97, AND 264, VIA MACKEYS ROAD, ROPER, MACE- 
DONIA, PLYMOUTH, PANTEGO, PINETOWN, WENONA, AND DOUBLASS 
CROSS ROADS. DOCKET No. 1235. 

APPLICATION OF EDENTON MACKEYS FERRY COMPANY BUS LINE 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER BETWEEN SWANQUARTER (AMENDED DURING HEARING 
TO READ ENGELHARD) AND THE VIRGINIA STATE LINE, DESTINA- 
TION SUFFOLK, VIRGINIA, VIA FAIRFIELD, COLUMBIA, THE NEW 
ALBEMARLE SOUND BRIDGE, EDENTON, VALHALLA, AND SUN- 
BURY. DOCKET No. 1388. 

Order, 
This Cause arises upon the above applications which were set for hearing 

and heard by the Commission on November 22, 1938, at 10:00 o'clock a.m. 

Delay in issuing this order was caused by the fact that some of the issues 

affecting same in interstate service have been pending before the Interstate 



Decisions and Adjustments of Complaints 231 

Commerce Commission and this order has been held in abeyance principally for 
that reason. 

The two applications were consolidated and heard at the same time. The 
Norfolk Southern Bus Corporation was represented by Colonel Rodman and 
Edenton Mackeys Ferry Company Bus Line was represented by Attorney 
Jack McMullen. 

The Norfolk Southern Bus Corporation presented evidence that it held 
franchises from Williamston over Highway No. 17 through Edenton and to 
Elizabeth City to Virginia State Line, destination Norfolk, and from William- 
ston to Columbia over Highway No. 64, and that if the application were 
granted from Plymouth to Washington, N. C, via Highway No. 97 and 264 
by Bunyan and also across the Albemarle Sound Bridge, it would enable the 
applicant to render better service south of Albemarle Sound than has been 
possible prior to the building of the bridge and the opening up of Highway 
No. 97. 

The Edenton Mackeys Ferry Company Bus Line presented evidence that if 
permitted to run over the Albemarle Bridge and over No. 64 to Columbia and 
over No. 94 to Fairfield and points in Hyde County, that it could give service 
to that section of Hyde and Tyrrell counties that did not now have service and 
probably could not otherwise obtain service, and at the same time this opera- 
tion would be a feeder for its line which had been granted from Edenton to the 
Virginia State Line, destination Suffolk, Virginia. The Norfolk Southern Bus 
Corporation opposed this application and it was also opposed by the Engel- 
hard- Washington Bus Line on the ground that business in Hyde County was 
very light and another line carrying passengers out north would so reduce 
the business of the Engelhard-Washington Bus Line that it would put it out 
of business. 

From all the evidence presented it appears that the Norfolk Southern 
Bus Corporation has proven convenience and necessity for its operating over 
the Albemarle Sound Bridge, known as Highway No. 172 and over Highway 
No. 97 without any pick-up on Highway No. 264 between the intersection of 
Highway No. 97 and Washington, North Carolina, and that the Edenton 
Mackeys Ferry Company Bus Line has failed to show convenience and neces- 
sity for the operation with closed doors from Edenton via Albemarle Bridge 
to Columbia and points south in Tyrrell and Hyde counties, therefore it is 

Ordered that the Norfolk Southern Bus Corporation's application be granted 
from the intersection of Highway No. 172 with Highway 17 near Edenton 
and at Edenton across Albemarle Sound to Highway No. 64 and from Ply- 
mouth, North Carolina, over Highway No. 97 to the intersection of No. 264 
near Bunyan; thence to Washington with closed doors, and it is 

Further Ordered that the application of Edenton Mackeys Ferry Company 
Bus Line be and the same is hereby denied. 

This the 17th day of January, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Dockets Nos. 1235 and 1388. 



232 ~N. C. Utilities Commission 

APPLICATION OF NORFOLK SOUTHERN RAILROAD COMPANY, MORRIS 
S. HAWKINS AND L. H. WINDHOLZ, RECEIVERS, FOR A FRANCHISE 
CERTIFICATE TO OPERATE AS A RESTRICTED MOTOR VEHICLE 
CARRIER OVER HIGHWAYS Nos. 30, 32 AND 37, BETWEEN CORA- 
PEAKE AND EDENTON VIA THE TOWNS OF SUNBURY, GATES- 
VILLE AND HANCOCK, AND FROM SAID STATIONS ON THESE 
ROUTES TO HOLLY WHARF, CARTER'S WHARF AND GATESVILLE 
WHARF, AND INTERMEDIATE WHARVES ADJACENT TO AND 
ALONG HIGHWAYS Nos. 30, 32 AND 37 ON THE CHOWAN RIVER AND 
ALBEMARLE SOUND AND THE ROANOKE RIVER. 

Order 

This Cause arises upon the above application and authority is being asked 
to transport pulp wood. 

The application was set for hearing, advertised in accordance with law, 
and heard on September 12, 1940, at 11:00 o'clock, a.m., in the office of the 
Commission in Raleigh. The applicant was represented by Mr. J. F. Dalton, 
Chief Traffic Officer of the Norfolk Southern Railroad Company, who was 
the only witness. No opposition appeared. 

According to testimony, the applicant's reason for desiring the franchise 
was that it had agreed with the North Carolina Pulp Company to furnish 
certain service in connection with the transportation of wood to be used in its 
manufacturing processes, since which time it has become necessary to 
abandon the railroad between Edenton and Suffolk, and in order to render 
the service which it desires in that territory it is necessary for it to have an 
authorized operation in order that this manufacturer may be served in the 
event that private haulers do not provide a sufficient service to meet this 
demand. 

Under the circumstances, it is thought that the agreement establishes con- 
venience and necessity to the extent warranted by law, and it is, therefore, 

Ordered that the petition be granted and that the applicant be permitted to 
file rates and that certificate issue when the law has been fully complied with 
by filing equipment specifications and insurance, and it is 

Further Ordered that the authority granted herein shall not be exclusive 
and that the applicant shall not have the right to restrain other carriers from 
rendering such services as they may find expedient under contract in con- 
nection with the transportation of pulp wood over the highways mentioned in 
this order. 

This the 19th day of September, 1940. 

(S) Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 2049. 



Decisions and Adjustments of Complaints 233 

APPLICATION OP NORTH WILKESBORO AND GALAX MOTOR EXPRESS 
FOR FRANCHISE CERTIFICATE TO OPERATE FROM NORTH WILKES- 
BORO VIA SPARTA TO N. C.-VIRGINIA STATE LINE. DOCKET NO. 
1964. (See C & S Motor Express Order. Docket No. 316.) 

APPLICATION OF NORTH WILKESBORO AND GALAX MOTOR EXPRESS 
FOR FRANCHISE CERTIFICATE TO OPERATE FROM NORTH WILKES- 
BORO VIA ELKIN TO N. C.-VIRGINIA STATE LINE. DOCKET NO. 2021. 
(See C & S Motor Express Order. Docket No. 316.) 

APPLICATION OF NORTH WILKESBORO AND HIGH POINT MOTOR EX- 
PRESS FOR FRANCHISE CERTIFICATE TO OPERATE FROM NORTH 
WILKESBORO TO HIGH POINT VIA ROCK RIVER, RONDA, ELKIN, 
BOONEVILLE, EAST BEND, WINSTON-SALEM AND WADLBURG. 
DOCKET No. 1549. (See C. & S. Motor Express Order. Docket No. 316.) 

APPLICATION OF OCRACOKE-MANTEO TRANSPORTATION COMPANY, 
INCORPORATED. 

Order 

This Cause arises upon the application of the Ocracoke-Manteo Transporta- 
tion Company, Inc., for a certificate to transport passengers by motor vehicle 
between Ocracoke, North Carolina, via bus to the north end of Ocracoke Island 
and Hatteras Inlet, a distance of about 14 miles; thence by ferry or boat across 
Hatteras Inlet to Hatteras and return to Ocracoke. 

This application was heard on August 23, 1938, at 10:00 o'clock a.m., in the 
office of the Commission in Raleigh, and the applicant was represented by Mr. 
W. L. Spencer, Attorney of Raleigh, N. C, after due advertising in accordance 
with the law. 

The applicant presented evidence of the necessity for the operation and no 
protestants appeared. This application is made under Chapter 455, Public 
Laws of 1931, which provides that for operation of a public service for 
compensation a certificate of convenience and necessity shall first be obtained 
from this Commission. And since there are no publicly maintained roads over 
the route in question, the applicant has to use the beach, which is a natural 
highway and is open for transportation between the points named. And since 
it is the policy of this Commission to be as liberal as possible with such oper- 
ations for the convenience of the public, it appears that such a transportation 
system over the line requested will greatly enhance the convenience of the 
people in that section. Therefore, it is 

Ordered that the petition be granted and that when the applicant otherwise 
complies with the statute, certificate shall be issued. 

This, the 13th day of January, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Docket No. 1381. 



234 ~N. C. Utilities Commission 

APPLICATION OP PARKWAY BUS COMPANY OP GALAX, VIRGINIA FOR 
FRANCHISE CERTIFICATE TO OPERATE AS PASSENGER MOTOR 
VEHICLE CARRIER PROM THE NORTH CAROLINA-VIRGINIA STATE 
LINE SOUTH OF GALAX, VIRGINIA TO MOUNT AIRY, NORTH CARO- 
LINA, OVER N. C. HIGHWAY NO. 89. 

Order 

This Cause arises upon the application of the Parkway Bus Company of 
Galax, Virginia which has an interstate franchise from the Interstate Com- 
merce Commission to operate between Galax, Virginia and Mount Airy, North 
Carolina over Highway No. 89, and in this application it seeks the right to 
carry passengers in intrastate commerce over this highway between the North 
Carolina-Virginia State Line and Mount Airy by way of Low Gap. 

The hearing was set for 11:00 o'clock a.m. on March 20 in the office of the 
Commissioner in Raleigh, duly advertised, and was heard on that date. The 
applicant was not represented by attorney but Mr. T. N. Woodruff, Mr. C. D. 
Haynes of Low Gap, Mr. T. R. Robertson of Mount Airy, and Mr. W. E. Alder- 
man of Galax all appeared in behalf of the applicant and testified as to the 
necessity of the proposed operation. No protestants appeared and from the 
evidence presented, there is no doubt but that the proposed service is needed 
and that the granting of this petition is in the public interest, therefore, it is 

Ordered-, that the petition be granted and that certificate be issued here- 
under when the applicant has complied with the law by filing equipment 
specifications and insurance. 

This the eleventh day of April, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1809. 

APPLICATION OF PIEDMONT COACH CO. FOR FRANCHISE CERTIF- 
ICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM ALBE- 
MARLE TO DAVIDSON VIA CONCORD: OVER NORTH CAROLINA 
HIGHWAY NO. 73. DOCKET NO. 1536. 

APPLICATION OF PIEDMONT COACH CO. FOR FRANCHISE CERTIF- 
ICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM THE 
INTERSECTION OF NORTH CAROLINA HIGHWAYS 109 AND 62 IN 
DAVIDSON COUNTY TO BURLINGTON VIA ASHEBORO OVER NORTH 
CAROLINA HIGHWAY NO. 62 ; THENCE OVER UNITED STATES HIGH- 
WAY NO. 220 TO INTERSECTION OP UNITED STATES HIGHWAY NO. 
220 AND NORTH CAROLINA HIGHWAY NO. 62 ; THENCE OVER NORTH 
CAROLINA HIGHWAY NO. 62 TO GRAHAM; THENCE OVER NORTH 
CAROLINA HIGHWAY NO. 54 TO BURLINGTON. DOCKET NO. 1537. 

Order 

This Matter came on for hearing and was heard before the undersigned 

Commissioner and Associate Commissioner, Frank W. Hanft, in the Hearing 

Room of the Utilities Commission in the City of Raleigh, beginning on April 

12, 1939, and finally concluded with the argument of counsel on the 8th day of 



Decisions and Adjustments of Complaints 235 

December, 1939; the argument having been deferred until a transcript of the 
testimony had been completed. 

The applicant, Piedmont Coach Company, was represented by H. P. Taylor 
and Banks D. Thomas, Attorneys, Wadesboro, N. C. 

The protestants were represented as follows: Messrs. Smith, Leach and 
Anderson, Attorneys, Raleigh; and Thomas D. Cooper, Attorney, Burlington, 
representing the Carolina Coach Company. I. M. Bailey, Attorney, Raleigh, 
representing the Atlantic Greyhound Corporation. 

The applicant, Piedmont Coach Company, now holds a franchise from 
Wadesboro through Albemarle, New London and thence over Highway 62-A to 
Highway 109, and thence to Thomasville to Winston-Salem. In the applica- 
tions now under consideration, Dockets No. 1536 and No. 1537, consolidated 
and heard together by consent, the applicant Piedmont Coach Company is 
asking for a franchise. 

1st. Over Highway 73 from Albemarle to Davidson via Concord, and 
2nd. For franchise from the intersection of Highway 109 and Highway 62 
to Burlington via Asheboro and Liberty. The two applications, if granted 
together with the franchise from Albemarle to the intersection of High- 
way 109 and Highway 62, which it already has, would give to the appli- 
cant franchise rights all the way from Davidson to Burlington. 

The record in the case, exclusive of exhibits, consists of 676 typewritten 
pages, and no attempt will here be made to analyze the testimony in detail. 

There is a veritable plethora of testimony from witnesses from all points 
along the proposed route, the substance of which is: That there is now no 
direct bus service between Davidson, Concord and Albemarle; that Davidson 
is a college town with a population of around 1,750, exclusive of some 600 
students; that the students now have to go by way of Charlotte to reach south- 
eastern points; that Concord is a city of over 14,000 population, wherein are 
located many mills, employing thousands of people, many of whom reside in 
adjacent territory and some of whom could be expected to use the proposed 
bus line; that Mt. Pleasant is a town of some 1,200 people without transpor- 
tation facilities of any sort and that Albemarle is a town of some 10,000 people 
wherein are also located mills with several hundred employees, many of whom 
reside on the proposed route and would, it is contended, use the proposed bus 
line. 

Testimony was further offered tending to show that there would be consid- 
erable travel between all these points and that people residing in the territory 
between Albemarle and Concord, who now use private automobiles, would make 
use of the proposed service in going to each of said towns and to Charlotte 
and points beyond. 

In following the proposed route from Albemarle in the direction of Bur- 
lington there is first, the town of New London with between 200 and 300 
people, then the village of Farmer, then the town of Asheboro which has a 
population, according to the testimony, of some 8,000 people and in which are 
located many industries with a large number of employees. From Asheboro 
the proposed service would pass through Central Falls, a mill town of around 
1,000 population, then to Liberty, a town of some over 1,000 population, and 
then to Burlington, where the population, including the environs, is 15,000 or 
more. 



236 "N. C. Utilities Commission 

The evidence further shows that in addition to the town of Mt. Pleasant 
and the territory between Albemarle and Concord, the section on the pro- 
posed route between Highway 109 and Asheboro, including the village of 
Farmer, has no transportation facilities whatever and neither has that 
section from Highway 220 to Liberty through Central Falls, nor from Lib- 
erty to Burlington through Belmont. 

The evidence further shows that the towns of Albemarle, Asheboro and 
Liberty are without railroad passenger facilities, passenger trains having been 
discontinued to each of said towns by order of this Commission. 

In opposition to the granting of the application the protestants offered 
testimony to the effect that the proposed service was unnecessary; that per- 
sons desiring to go from Davidson to Concord and points east of Concord 
could now go by the Greyhound Bus Line to Charlotte and then by the Caro- 
lina Coach Company to Concord on to Albemarle and points east, or by the 
Queen City Coach Company from Charlotte through Monroe, Wadesboro and 
points east; that persons desiring to go from Albemarle to Burlington could 
now travel by the Piedmont Coach Company to Thomasville and then by the 
Carolina Coach Company to Burlington, and persons desiring to go from 
Asheboro to Burlington could now travel by the Greensboro-Fayetteville line 
to Greensboro, and then by the Carolina Coach Company to Burlington. 

It was further contended by the protestants, and testimony was offered in 
support of such contentions, that the towns and communities on the proposed 
route which do not now have any transportation facilities, are too small to 
support bus service, and that the entire route over which service is proposed 
would not provide enough business to support the proposed line and that the 
only hope for its financial success would depend upon diverting business from 
the protestant lines to the proposed lines. 

It was further contended by the protestants that the amount of business 
which the proposed line would divert from their lines would be serious, due to 
the fact that by its connection with other lines new through routes would be 
created which, in many instances, would make it more advantageous for the 
public to use the proposed line and its connections than the present service. It 
was pointed out that the proposed line would make it possible for persons in 
Albemarle to travel by way of Asheboro over the Greyhound line to Raleigh 
rather than from Albemarle over the Carolina Coach Company to Raleigh; 
and that further it would create a new route from Charlotte via Albemarle 
and Asheboro through Burlington, then over the Virginia Stages to Danville 
and points north in competition with the Carolina Coach Company and At- 
lantic Greyhound connecting at Greensboro for Danville and points north. 
It was also contended that by the connection at Burlington a new north-south 
service would be created through Albemarle and Wadesboro over the Queen 
City Coach Company to points south. 

All of the testimony, contentions and arguments of counsel in this case have 
been given most serious consideration. 

The policy of this Commission has been and still is that additional bus 
service should not be established through a territory already served where the 
establishment of the new service will be largely dependent for its existence 
upon what business it will take from the existing line. The Commission be- 
lieves that this is a sound policy and to deviate materially from it would 
mean the ultimate disruption of the bus companies of the State, resulting in 



Decisions and Adjustments of Complaints 237 

improperly maintained equipment and poor service generally. It is not be- 
lieved, however, that the granting of the instant application would divert from 
the present operators enough business to appreciably affect them. While it is 
true that most of the towns through which the proposed line will operate 
already have bus service, in most instances the present service is a north 
and south service and does not afford convenient mode of travel between the 
towns on the proposed line. At the present time one must travel from Davidson 
to Concord via Charlotte; from Concord to Albemarle via either Charlotte or 
Salisbury; from Albemarle to Asheboro either through Lexington and High 
Point or by Biscoe; from Asheboro to Liberty either by way of Greensboro or 
Siler City, and from Liberty to Burlington by Greensboro. A glance at the 
highway map will show the circuity of the present bus service between the 
towns mentioned. The proposed line will give direct service between these 
towns. Furthermore, from the evidence it appears that the proposed line 
would give to the present lines as much business as it would receive from 
them. Emphasis was placed upon the testimony in the argument of counsel 
that if the proposed line were permitted, that passengers traveling from 
Concord and Albemarle to Raleigh would proceed by the proposed line to 
Asheboro and from there to Raleigh by the Atlantic Greyhound Line, instead 
of direct from Concord and Albemarle by the Carolina Coach Company. 
Doubtless in some instances this would be true, where the schedules hap- 
pened to meet the convenience of the passenger, but ordinarily a passenger 
prefers to travel by the same line without change rather than by connecting 
carriers where there is always a chance of a wait at the junction point. Like- 
wise there is less reason to believe that many passengers from Concord and 
Albemarle would travel to Burlington by the proposed line and from there to 
Raleigh by the Carolina Coach Company rather than by the Carolina Coach 
Company direct. 

Further considering the question of diversion from the present lines to the 
proposed line and the argument of counsel that business might be diverted 
from the main line of the Carolina Coach Company running from Charlotte to 
Salisbury to Greensboro to Durham and Raleigh, the Commission is of the 
opinion that even if the amount of business were diverted, as contended by 
counsel for the protestants, the Carolina Coach Company would not be 
seriously affected thereby. There is no section in North Carolina where there 
is a greater amount of intrastate travel by bus than on the line of the Carolina 
Coach Company from Raleigh to Charlotte by Greensboro. In fact, there is so 
much travel that the Bus Company with hourly schedules finds it difficult to 
provide sufficient equipment to handle it. In the opinion of this Commission 
the amount of business diverted from the existing lines to the proposed line 
would not adversely affect the existing lines to a degree sufficient to justify 
this Commission in refusing to grant the instant application, thereby denying 
to the towns and communities along the proposed line, some of which have 
no transportation facilities whatever, the convenience and advantage of bus 
service. 

The Commission therefore finds that convenience and necessity has been 
shown for the granting of the application. 

Wherefore it is Ordered: 

1. That upon compliance with the rules and regulations of this Commission 
a certificate of convenience and necessity shall be granted to the Piedmont 



238 N. C. Utilities Commission 

Coach Company to operate as a motor vehicle carrier of passengers, mail, 
newspapers and light express from Albemarle to Davidson via Concord over 
North Carolina Highway No. 73 and return. 

2. A certificate of convenience and necessity be granted to the Piedmont 
Coach Company to operate as motor vehicle carrier of passengers, mail, news- 
papers and light express from the intersection of North Carolina Highways 
109 and 62 in Davidson County to Burlington via Asheboro over North Caro- 
lina Highway 62; thence over U. S. Highway 220 to intersection of U. S. 
Highway 220 and North Carolina Highway 62; thence over North Carolina 
Highway 62 to Graham; thence over North Carolina Highway 54 to Burlington 
and return. 

3. That the certificate No. 454 now held by the Piedmont Coach Company 
shall be amended to include the operation herein authorized when the rules 
and regulations of the Commission have been complied with. 

This the 16th day of February, 1940. 

(Signed) Stanley Winborne;, 

Utilities Commissioner. 
Dockets Nos. 1536 and 1537. 

APPLICATION OF PIEDMONT COACH COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
ALBEMARLE TO DAVIDSON VIA CONCORD; OVER NORTH CARO- 
LINA HIGHWAY NO. 73. DOCKET NO. 1536. 

APPLICATION OF PIEDMONT COACH COMPANY FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM THE 
INTERSECTION OF NORTH CAROLINA HIGHWAYS 109 AND 62 IN 
DAVIDSON COUNTY TO BURLINGTON VIA ASHEBORO OVER NORTH 
CAROLINA HIGHWAY NO. 62; THENCE OVER U. S. HIGHWAY NO. 220 
TO INTERSECTION OF U. S. HIGHWAY NO. 220 AND N. C. HIGHWAY 
NO. 62; THENCE OVER N. C. HIGHWAY NO. 62 TO GRAHAM; THENCE 
OVER N. C. HIGHWAY NO. 54 TO BURLINGTON. DOCKET NO. 1537. 

Order Overruling Exceptions 

This Cause arises upon the exceptions filed by protesting carriers, the 
Carolina Coach Company and the Atlantic Greyhound Corporation, to the 
Order entered on the 16th day of February, 1940, in the above cases, and 
after having fully considered all of the exceptions to the Order, filed by the 
said protestants, it is 

Ordered, That the said exceptions are hereby all and severally overruled 
and denied. 

This the twenty-eighth day of February, 1940. 

(Signed) Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Dockets Nos. 1536 and 1537. 



Decisions and Adjustments of Complaints 239 

PIEDMONT COACH COMPANY'S TRANSPORTATION OP NEWSPAPERS. 

Order 

Whereas, this Commission issued an order in the matter of the Piedmont 
Coach Company for franchise to operate motor vehicles in the transportation 
of passengers, light express, and mail, authorizing the issuance of the cer- 
tificate for such operations over certain highways in the State of North 
Carolina, as is evidenced by Certificates Nos. 454 and 454a, and 

Whereas, this Commission has always construed the term "light express" 
and "mail" to include newspapers, the express word "newspapers" was not 
included in said certificate, and 

Whereas, some question has arisen among officials handling the Piedmont 
Coach Company application before the Interstate Commerce Commission be- 
cause of the fact that the certificate did not bear the express word "news- 
papers," that the Piedmont Coach Company was not specifically authorized to 
transport newspapers, therefore, in order that the Piedmont Coach Company 
may not be deprived of a right which was granted to it under the laws of 
North Carolina, after hearing and order by this Commission, it is 

Now Ordered that Certificates Nos. 454 and 454a and any orders prior or 
since that time which have been issued by this Commission affecting the 
rights of the Piedmont Coach Company, are hereby amended to include the 
transportation of newspapers between any and all points set forth in Cer- 
tificates Nos. 454 and 454a, and it is 

Further Ordered that Certificates Nos. 454 and 454a be so amended and 
certified copy furnished by this Commission to the Piedmont Coach Company 
in order that same may be filed with the Interstate Commerce Commission to 
cure the apparent defect in its application. 

This the 18th day of October, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 353. 

PETITION OF QUEEN CITY COACH COMPANY, SUCCESSOR TO GREENS- 
BORO-FAYETTEVILLE BUS LINE, INC. 

Temporary Order Pending Hearing and Decision 
The Greensboro-Fayetteville Bus Line, Inc., now owned by the Queen City 
Coach Company, made application to operate a bus line between Fayetteville 
and Lillington via N. C. Highways Nos. 24 and 210. 

This Cause arises upon the application referred to above. It was set for 
hearing several times and the applicant appeared once for hearing but the 
inclemency of the weather prevented witnesses from arriving. Since that time 
various other things, over which the applicant had no control, have prevented 
hearing. 

The Carolina Coach Company made application to operate this line but 
agreed with the applicant in Docket No. 1059 to withdraw its application 
from Lillington to Fort Bragg if Greensboro-Fayetteville Bus Line, Inc., would 
withdraw its application between Lillington and Sanford. Papers were filed 
with this Commission complying with the agreement. 



240 ~N. C. Utilities Commission 

It now appears that a great emergency has arisen at Fort Bragg, because 
of the mobilization of the army, which necessitates workmen at Fort Bragg 
living in adjacent towns and villages, and a petition has been filed with this 
Commission by Mr. Neill McK. Salmon, Attorney at Law, Lillington, to the 
effect that the town of Lillington needs early morning, midday and evening 
service between Lillington and Fort Bragg to serve workmen residing in the 
town of Lillington. The representatives of the signers of this petition ap- 
proached the Greensboro-Fayetteville Bus Line, Inc., authorities several days 
ago to request hearing on the application referred to above but, because of the 
fact that the Commission has been unable to set the matter for hearing, it now 
appears that a temporary emergency service is needed to serve those two 
points over Highway No. 210 pending hearing; therefore, it is 

Ordered, That Docket No. 1059 be set for hearing on Monday, October 28, 
1940, at 10:00 o'clock a.m., at the Sir Walter Hotel in Raleigh and that the 
applicant, the Greensboro-Fayetteville Bus Line, Inc., or its successor, the 
Queen City Coach Company, is hereby authorized to institute a temporary 
service between Lillington and Fort Bragg, pending hearing and decision on 
the application referred to herein. 

This the seventeenth day of October, 1940. 

Stanleiy Winbobne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1059. 

APPLICATION OF QUEEN CITY COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM 
FAYETTEVILLE TO GOLDSBORO AS FOLLOWS: FROM FAYETTE- 
VILLE OVER U. S. HIGHWAY 301 TO JUNCTION OF U. S. 301 AND 
N. C. HIGHWAY 102, THENCE OVER N. C. HIGHWAY 102 TO GOLDS- 
BORO. 

Order 

This Cause came on for hearing and was heard before the undersigned 
Commissioner sitting alone in the Hearing Room of the Utilities Commission 
in the City of Raleigh beginning on March 14, 1939, at 11 o'clock, and being 
concluded on the 27th day of March, 1939. 

The Queen City Coach Company was represented by Hon. R. Gregg 
Cherry, of Gastonia, and Mr. K. J. Kindley, of Charlotte. 
The protectant, Atlantic Greyhound Corporation, was represented by Hon. 
I. M. Bailey, Raleigh, and the protestant, Carolina Coach Company, by 
Mr. John Anderson, of the firm of Smith, Leach & Anderson, Raleigh. 

It was shown at the hearing by competent testimony that both Goldsboro 
and Fayetteville are cities of considerable size, with population of some over 
15,000 each; that there is constant travel between them; that to travel by bus 
from Goldsboro to Fayetteville at the present time one must either go over the 
Greyhound line to Warsaw and change to the Queen City Coach Co., or 
by Smithfield and Dunn, where a change in buses is made at both places; 
that the distance from Goldsboro to Fayetteville by Warsaw is 78 miles, and 
the distance from Fayetteville by Smithfield is 70 miles, and that the distance 



Decisions and Adjustments of Complaints 241 

from Goldsboro to Fayetteville over N. C. Highway 102 and U. S. Highway 
301, the route over which a certificate is sought in this case, is 60 miles. 

It was further shown that on Highway 102 between Goldsboro and Fayette- 
ville is located the village of Newton Grove; that at Newton Grove there is a 
school of considerable size and near Newton Grove a retreat for retired 
Catholic Priests; that said Highway 102 runs through a very prosperous 
farming section, where most of the people own their own homes and farms, 
and that at both ends of said road within several miles of Goldsboro and 
within several miles of Fayetteville the population is very dense, and that the 
people residing on said road between Goldsboro and Fayetteville, except that 
part between the junction 102 and U. S. 301 outside of Fayetteville, are with- 
out public transportation facilities. 

It was further shown by the establishment of the proposed service that the 
traveling public north and east of Goldsboro and south and west of Fayette- 
ville would be convenienced. 

The protestants strongly opposed the granting of this franchise, offering 
evidence tending to prove that the proposed line would divert business from 
their lines, not only between Goldsboro and Fayetteville, but from points 
beyond both Goldsboro and Fayetteville and that much traffic which now 
passes over the combined schedules of the Atlantic Greyhound and the Caro- 
lina Coach Company between Charlotte and Goldsboro and points east of 
Goldsboro and west of Charlotte could be routed through Fayetteville to Char- 
lotte over the Queen City Line. 

The record in this case consists of 134 pages, in addition to maps and 
numerous other exhibits, and it would, therefore, be impracticable to attempt 
in this order to analyze in detail the evidence adduced. After a full considera- 
tion of the record, however, the conclusion has been reached that convenience 
and necessity for the proposed service has been established and the fact that 
the proposed service may or will take some business from the protestants' 
lines is not deemed sufficient reason for denying the application. 

Wherefore it is Ordered, that the application of the petitioner, Queen City 
Coach Company, be and the same is hereby granted, and that the appropriate 
amendment be made to the present certificate of the Queen City Coach Com- 
pany authorizing it to establish passenger bus service between Fayetteville 
and Goldsboro over routes 301 and 102, as set out in the application, including 
the privilege of carrying mail and light express. 

This the 28th day of October, 1939. 

(Signed) Stanley Winborne, 

Commissioner. 

Docket No. 1506. 

SUPPLEMENTAL ORDER AMENDING THE ORDER OF OCTOBER 28, 
1939 IN DOCKET NO. 1506. 

Upon Further examination of the stenographic report in the above docket 
since the issuance of the Order of October 28, 1939, it has been noted that there 
was an agreement between the Carolina Coach Company and the Queen City 
Coach Company at the time the case was heard, that the Carolina Coach Com- 
pany would withdraw any opposition to the granting of the application upon 
the condition that the Queen City Coach Company be required to operate 

16 



242 N. C. Utilities Commission 

with closed doors from the intersection of U. S. Highway No. 301 with N. C. 
102 to Fayetteville, and the Queen City Coach Company officials present 
agreed thereto, therefore it is 

Ordered that the order of October 28, 1939 in Docket No. 1506 be, and the 
same is hereby amended to embrace this agreement. 
This the fifteenth day of November, 1939. 

(S) Stanley Winborne, 
Utilities Commissioner. 
By Order of the Utilities Commissioner: 

(S) R. O. Self, Chief Clerk. 
Docket No. 1506. 

APPLICATION OF QUEEN CITY COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS FROM JUNCTION NORTH CAROLINA HIGHWAY 36 
WITH UNITED STATES HIGHWAYS 19 AND 23 TO THE NORTH CAR- 
OLINA-TENNESSEE LINE VIA N. C. HIGHWAY 36, WITH MARS HILL, 
NORTH CAROLINA AS AN OFF-ROUTE POINT. 

Order 
This Cause was set for hearing and was heard by the undersigned Com- 
missioner on the 29th day of September, 1939, in the Hearing Room of the 
Utilities Commission in the City of Raleigh. 

The applicant, Queen City Coach Company, was represented by K. J. 

Kindley, Attorney, Charlotte, N. C, and W. E. Smith, Attorney, Albemarle, 

North Carolina. 

The protestant, Marion Holcombe, owner and operator of the Mars Hill- 

Weaverville Bus Line, was represented by George Pennell, Attorney, 

Asheville, N. C. 

From the evidence adduced at the hearing, the Commission finds the follow- 
ing facts: 

That at the time of hearing, the protestant, George Holcombe, operating as 
Mars Hill-Weaverville Bus Line held a franchise from this Commission as a 
motor vehicle carrier of passengers from Asheville to Mars Hill via Weaver- 
ville; that the Holcombe line has and is providing frequent schedules between 
Asheville and Mars Hill, which have been a great convenience to Mars Hill 
College and the public generally at Mars Hill, Weaverville and intermediate 
points; that while this service has been a great accommodation to the people 
mentioned, yet due to the growth of the College and to the fact that the stu- 
dent body comes from various sections in North Carolina and Tennessee, 
there has developed a demand for a service from Mars Hill north into Ten- 
nessee and for through service via Asheville to various points in North Caro- 
lina; that the Interstate Commerce Commission has granted to the applicant, 
Queen City Coach Company interstate rights through Mars Hill over the same 
highways involved in the instant case and that said rights, according to the 
record, become complete as of today. The Commission further finds that the 
Queen City Coach Company now has intrastate rights to operate within two 
miles of Mars Hill and that there is involved in this case the question as to 
whether these intrastate rights will be extended from the junction of U. S. 
Highways 19 and 23, over N. C. Highway 36 to Mars Hill. 



Decisions and Adjustments of Complaints 243 

The Commission further finds as a fact that there is very definite demand 
for the service of the applicant from the people of Mars Hill, the faculty and 
student body of the College and from people residing in various sections of 
North Carolina, who are interested in the growth and development of Mars 
Hill College and desirous of procuring for the College the best transportation 
facilities available. 

The Commission has been reluctant to grant the franchise applied for, for 
the reason that the superior service may to some considerable extent divert 
business from and lessen the income of the Holcombe line, which all the wit- 
nesses admit has served the people of Mars Hill and the College rather faith- 
fully over a period of time when no other service was offered. It has been the 
policy of this Commission to protect franchise carriers and their investments 
as long as they provide adequate service. However, in the instant case, after a 
very full and complete consideration, in view of the fact that the college has 
had such a rapid growth and that its continued prosperity depends greatly 
upon adequate transportation facilities and in view of the fact that the Queen 
City Coach Co. under its interstate franchise will operate right through Mars 
Hill, the Commission cannot deny to the people of Mars Hill the right to use 
this service to intrastate points. 

The Holcombe line is not in a position and has not the facilities to provide 
the service offered by the Queen City Coach Company, but the Commission is 
of the opinion that the schedules proposed by the Queen City Coach Company 
through Mars Hill will by no means take from the Holcombe line all of its busi- 
ness, and while it may result in necessitating a reduction in the number of 
schedules now operated by the Holcombe line, there will still remain a need for 
the Holcombe service at Mars Hill, Weaverville and intermediate points. 

Wherefore it is Ordered, that the application of the Queen City Coach 
Company be and the same is hereby granted to the extent that on all of its 
schedules passing through the town of Mars Hill, destined to points beyond, 
the Queen City Coach Company is authorized and directed to take on and dis- 
charge passengers at Mars Hill to and from instrastate points. 

It is Further Ordered, that the franchise certificate now held by the Queen 
City Coach Company be presented to the Commission, so that the appropriate 
amendment to the certificate can be made, in accordance with this order. 

This the 6th day of November, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1580. 

APPLICATION OF QUEEN CITY COACH COMPANY FOR AUTHORITY TO 
OPERATE IN THE CITY OF HICKORY OUT TO VARIOUS POINTS. 
DOCKET No. 1974. (See Hickory Bus Company Order. Docket No. 1945.) 



244 ~N. C. Utilities Commission 

APPLICATION OP RAILWAY EXPRESS AGENCY, INCORPORATED, FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM WINSTON-SALEM TO RURAL HALL TO MOUNT AIRY; 
WINSTON-SALEM TO WALNUT COVE AND GERMANTON; GREENS- 
BORO TO SUMMERFIELD AND STOKESDALE; GREENSBORO TO 
CLIMAX AND SANFORD; CLIMAX TO RAMSEUR; SILER CITY TO 
RAMSEUR VIA HIGHWAY No. 64. 

Order 
Appearances : 

For the Applicant: Railway Express Agency — 
H. B. MaGill, Charlotte, N. C. 
E. C. Berry, Washington, D. C. 

For the Protestant: North Carolina Truck Owners Assn. — 
C. A. Cochran, Charlotte, N. C. 
C. D. Taliaferro, Charlotte, N. C. 
David J. Craig, Jr., Charlotte, N. C. 

This Case came on for hearing and was heard by me, the undersigned Com- 
missioner, in the Hearing Room of the Utilities Commission in the City of 
Raleigh, North Carolina, on March 6, 1939. 

On the 11th day of January, 1939, this Commission made an order in 
Docket No. 1376 authorizing the Atlantic & Yadkin Railroad to discontinue 
passenger train service between Greensboro and Mount Airy and between 
Greensboro and Sanford if and when satisfactory arrangements had been made 
for mail and express service to and from the various towns served by the said 
Railroad's passenger trains. The said passenger trains in question carries both 
mail and express. Following said order this Commission was notified by a 
representative of the United States Post Office Department that when said 
passenger trains were discontinued, proper arrangements would be made by 
said Post Office Department for the carrying of the mail. On the 13th day of 
January, 1939, the Railway Express Agency, Incorporated, which had been 
using the said passenger train for its express service, applied to this Com- 
mission for a Certificate of Convenience and Necessity to operate as a motor 
vehicle carrier from Winston-Salem to Rural Hall to Mount Airy; Winston- 
Salem to Walnut Cove and Germanton; Greensboro to Summerfield and 
Stokesdale; Greensboro to Climax and Sanford; Climax to Ramseur; Siler 
City to Ramseur via Highway No. 64. All the points set out in said application, 
except Winston-Salem and Germanton, are on the line served by the said 
Atlantic and Yadkin Railroad, but both Winston-Salem and Germanton are 
now served by said Railway Express Agency, Inc., over other railroads and, 
therefore, the applicant asked for franchise to no point which is not now 
served by the applicant. The purpose of the application is to render service 
by motor on the highways to the points now served by the applicant from the 
passenger trains of the Atlantic & Yadkin Railroad ordered discontinued, as 
aforesaid. The reason applicant asked for a certificate to operate from Win- 
ston-Salem to Rural Hall and to Mount Airy and from Winston-Salem to 
Walnut Cove and Germanton, is because the condition of the Highway par- 
alleling the Atlantic & Yadkin Railroad from Greensboro to Mount Airy makes 



Decisions and Adjustments of Complaints 245 

it impracticable to operate motor vehicles at all seasons of the year from 
Greensboro to Mount Airy direct. 

From the testimony adduced at the hearing, the Commission finds that it is 
the purpose of said Express Company to handle only such express as it now 
handles by train and to provide the same pick-up and delivery service which 
exists at present, using the present facilities which it now has in the various 
points it now serves. 

The protestant, the North Carolina Truck Owners Association, opposed the 
granting of these franchises applied for by said Express Company, upon the 
ground that ample facilities are now available between all of said points and 
that to allow the said Express Company to operate over the highways would 
add to the competition among the North Carolina Truck Owners serving the 
points in question and divert from them to the said Express Company a sub- 
stantial part of the business which they now enjoy. The said protestant con- 
tended that the members of its Association were ready, willing and able to 
provide all the service necessary and were willing to coordinate their sched- 
ules with the train schedules at the junction points and would enter into an 
agreement or agreements for inter-line service with the railroads for express 
moving, partly by rail and partly by truck. 

The Railway Express Agency, Inc., operates a vast network of lines 
throughout the entire United States, and while this Commission has no juris- 
diction over its operation beyond the confines of North Carolina, yet in pass- 
ing on the applications before it for intrastate rights, it cannot be oblivious 
to what everyone knows that a large amount of the business to and from the 
points in question will be interstate and that in handling the interstate busi- 
ness, said Express Company can at the same time handle the intrastate busi- 
ness, as it is doing at present, the profitableness of the operation depending 
upon both interstate and intrastate business. 

At the time this Commission ordered the discontinuance of the Atlantic 
& Yadkin passenger trains, it promised to the people residing along the line 
the very best service available in lieu thereof, and while it is true that the 
North Carolina Truck Owners may in the future coordinate their various types 
of service with rail service, such has not even yet been attempted, and this 
Commission does not believe that the first attempt should be made in this 
case. The process of coordination would be long and tedious. The members of 
the North Carolina Truck Owners Association are now engaged in business 
strictly competitive with the railroads, while the Railway Express Company 
operates almost entirely by railroad and is already fully coordinated with the 
railroad service. The proposed operations by the Railway Express Company 
do not constitute new competition with the present truck operators because 
such competition already exists. 

Furthermore, there was some testimony adduced at the hearing that if the 
Railway Express Agency were granted the franchises sought herein that it 
was practically certain that said Express Company would be awarded mail 
contracts to the various points in question, thereby enabling it to deliver 
both mail and express with the same vehicles, enhancing the probability of 
more dependable service. 

Upon consideration of the entire case, the Commission is of the opinion 
that convenience and necessity has been clearly shown for the service, except 
from Winston-Salem to Walnut Cove and Germanton, both of said points being 



246 N. C. Utilities Commission 

located on the Norfolk and Western Railroad and served by the applicant by 
rail. The Commission is of the further opinion that, with the exception of 
Walnut Cove and Germanton, the applicant is best prepared to render service 
between the other points. 

Wherefore it is Ordered, that upon the compliance with the rules and regula- 
tions of the Commission, franchise certificate be issued to the applicant to oper- 
ate both ways between the following points: (1st) Winston-Salem to Rural Hall 
to Mount Airy over Highway 52; (2nd) Greensboro to Summerfield and 
Stokesdale over Highway 220 to intersection of Highway 65 to intersection of 
Highway 68 over Highway 68 to Stokesdale; (3rd) Greensboro to Climax and 
Sanford over Highways 421, 22 and 61, said operation to Climax being an off- 
route over Highways 22 and 61 from Highway 421; and (4th), Siler City to 
Ramseur over Highway 64. 

This the 17th day of April, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1511. 

APPLICATION OF RAILWAY EXPRESS AGENCY, INCORPORATED, FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM WINSTON-SALEM TO RURAL HALL TO MOUNT AIRY: 
WINSTON-SALEM TO WALNUT COVE AND GERMANTON: GREENS- 
BORO TO SUMMERFIELD AND STOKESDALE: GREENSBORO TO 
CLIMAX AND SANFORD: CLIMAX TO RAMSEUR: SILER CITY TO 
RAMSEUR VIA HIGHWAY No. 64. 

Denial of Motion for New Parties 

This Matter again comes before the Commission upon motion of Blizard 
Motor Express of Mount Airy, North Carolina; Fredrickson Motor Express, 
Charlotte, North Carolina and Motor Transit Company, Raleigh, North Caro- 
lina, filed on April 26, 1939, through their attorneys, Cochran & McCleneghan, 
E. J. Hanson, David J. Craig, Jr., and C. D. Taliaferro, asking that said afore- 
mentioned motor carriers be made parties protestant; that they be now 
allowed to adopt the protest of the North Carolina Truck Owners Association 
heretofore filed in this cause, and that they be permitted to adopt the excep- 
tions, filed April 26, 1939, by the North Carolina Truck Owners Association to 
the order of this Commission, dated 17th day of April, 1939. 

Application in this cause was filed by the Railway Express Agency on the 
13th day of January, 1939. Publication of the notice of said application was 
duly made in the Greensboro Daily News. Hearing on said application was 
had on March 6, 1939, at which time the North Carolina Truck Owners Asso- 
ciation appeared in opposition to the application. Mr. Charles H. Fredrickson, 
President of Fredrickson Motor Express Company, and Mr. R. S. Koonce, of 
the Motor Transit Company, were both present at the hearing and were wit- 
nesses for the North Carolina Truck Owners Association. Order was entered 
on April 17, 1939, granting that part of the application set forth in the order. 

Rule 4, subsection (9) of the Commission's Rules of Practice and Procedure 
is as follows: 

In any formal proceeding the Commissioner may permit any corporation, 
association, body politic or person to intervene by filing an intervening 



Decisions and Adjustments of Complaints 247 

petition prior to or at the time the case is called for hearing or at the time 
to which the same may have been continued. Leave thus granted shall 
entitle the intervener to have notice of and to appear at the taking of 
testimony to produce and cross-examine witnesses, and to be heard in 
person or by counsel on the argument. Intervention petitions will not be 
permitted where they broaden the issues of the proceeding in which filed. 
The petitioner must furnish as many complete copies of the petition for 
intervention as there are parties to the case and two additional copies for 
the use of the Commissioner. 

The requirement of the foregoing rule that intervention shall be made prior 
to or at the time the case is called for hearing is a reasonable requirement, 
and to allow parties to await the termination of the case and if dissatisfied with 
the conclusions reached therein, to then be made parties of record for the pur- 
pose of an appeal, would be a most unusual and unfair practice. 

Wherefore,, the motion is denied. 

This the 1st day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1511. 

APPLICATION OF RAILWAY EXPRESS AGENCY, INCORPORATED, FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CAR- 
RIER FROM WINSTON-SALEM TO RURAL HALL TO MOUNT AIRY; 
WINSTON-SALEM TO WALNUT COVE AND GERMANTON: GREENS- 
BORO TO SUMMERFIELD AND STOKESDALE: GREENSBORO TO 
CLIMAX AND SANFORD: CLIMAX TO RAMSEUR: SILER CITY TO 
RAMSEUR VIA HIGHWAY No. 64. 

Order Overruling Exceptions 

The Above Entitled Matter again comes before the Commission upon 
exceptions filed April 26, 1939, by the North Carolina Truck Owners Associa- 
tion through its attorneys, Messrs. Cochran & McCleneghan, E. J. Hanson, 
David J. Craig, Jr., and C. D. Taliaferro, to the order of this Commission 
dated April 17, 1939. 

After a consideration of .each and all of the exceptions, the undersigned 
Commissioner is definitely of the opinion that the order of April 17, 1939, is 
amply supported by the record and should not be either reversed or modified. 

Wherefore, each and all of said exceptions are hereby refused, overruled and 
denied. 

This the 1st day of May, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1511. 

IN THE MATTER OF RAILWAY EXPRESS SERVICE BETWEEN WEL- 
DON AND PLYMOUTH VIA PARMELE 

Order 
It Appearing, that by consent order dated June 12, 1939, the Atlantic Coast 
Line Railroad Company was authorized to discontinue passenger train service 
between Weldon and Parmele, and between Tarboro and Plymouth via Par- 



248 N. C. Utilities Commission 

mele, provided arrangements satisfactory to the Commissioner were made with 
respect to handling mail and express on said lines; 

It Further Appearing, that the handling of express in Atlantic Coast Line 
Railroad Company's freight trains to and from points on its lines interme- 
diate to Weldon and Parmele and intermediate to Plymouth and Parmele does 
not offer express service satisfactory to receivers and shippers of express at said 
points, the same causing considerable inconvenience to the public; 

It Further Appearing, that Railway Express Agency, Inc., desires to dis- 
continue the handling of its express business on the freight trains of the 
Atlantic Coast Line Railroad Company between Weldon and Plymouth, via 
Parmele, and to substitute company owned trucks to transport its express to 
and from points on the said Atlantic Coast Line Railroad Company, which 
points are not now served by passenger trains; 

It Further Appearing, that the operation of said trucks between the same 
points now served by the Railway Express Agency, Inc., on the freight trains 
will not create any new service but will simply be a divergence of the present 
business from the railways to the highways and will not be the creation of an 
additional transportation system, competitive with any other transportation 
system, the business which the Railway Express Agency, Inc., handles being 
of a different and distinct type from that handled by other motor carriers; and 

It Further Appearing, that the need for this service is so imminent and 
imperative and is so unmistakably in the public interest; 

It is Therefore Ordered, that the Railway Express Agency, Inc., be and the 
same is without formal hearing authorized to substitute truck service for 
freight train service in the handling of its express between Weldon and Ply- 
mouth, via Parmele, at which points trucks will connect with rail express cars 
now being handled by the Atlantic Coast Line Railroad Company; and 

It is Further Ordered, that substitution hereinbefore authorized be placed 
into operation on the first day of August, 1939, or as soon thereafter as arrange- 
ments can be made, and that the Railway Express Agency, Inc., report to the 
Commissioner the actual time the authorized service is inaugurated, the num- 
ber of trucks placed in service and their schedules. 

This the 25th day of July, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1662. 



Decisions and Adjustments of Complaints 249 

APPLICATION OF RALEIGH-DANVILLE MOTOR EXPRESS FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
OF FREIGHT FROM RALEIGH TO WARRENTON, VIA HIGHWAY 
No. 59. DOCKET No. 1616; 
And 
APPLICATION OF D. D. JONES TRANSFER AND WAREHOUSE COM- 
PANY, INCORPORATED, FOR FRANCHISE CERTIFICATE TO OPER- 
ATE AS MOTOR VEHICLE CARRIER OF FREIGHT FROM RALEIGH 
TO THE NORTH CAROLINA-VIRGINIA STATE LINE VIA HIGH- 
WAY No. 59 TO WARRENTON, No. 158 TO MURFREESBORO, No. 35 TO 
WINTON, No. 30 TO SUNBURY, No. 32 TO NORTH CAROLINA-VIR- 
GINIA STATE LINE, AND ROUTE 561 FROM LOUISBURG, TO CEN- 
TERVILLE, THENCE HIGHWAY No. 58 TO HIGHWAY No. 158. DOCKET 
No. 1814. 

Order 
This Cause arises upon the applications named above, which were adver- 
tised in accordance with law, set for hearing and heard on February 27, 
1940, at 10:15 o'clock a.m. 

By. agreement between counsel representing the applicants, the cases were 
consolidated and heard accordingly. 

The applicant, Raleigh-Danville Motor Express was represented by Ruark 
and Ruark, Attorneys at Law of Raleigh. D. D. Jones Transfer and Warehouse 
Company, Inc., was represented by Attorney W. O. Harris, Jr., of Raleigh. 
Both applications were protested by United Express Company of Henderson, 
represented by Mr. Irvine B. Watkins, Attorney at Law of Henderson. Mr. 
Murray Allen of Raleigh represented the Seaboard Air Line Railway Com- 
pany. Docket No. 1814 was opposed by Stallings Transfer Service, repre- 
sented by L. R. Stallings of Spring Hope, N. C, and Thurston Motor Lines, 
represented by D. J. Thurston, Jr., of Wilson, N. C. 

Both applicants presented representatives of their lines, and shippers and 
receivers of freight, as witnesses. Attorney Harris for D. D. Jones Transfer 
and Warehouse Company, Inc., stated that his client was not protesting the 
application of the Raleigh-Danville Motor Express, but it was asking for a 
franchise, and was not particularly concerned about it unless it was found 
that both franchises could not be granted. 

Evidence was presented to show that the Raleigh-Danville Motor Express 
had been serving Louisburg more or less with emergency shipments, because it 
had no regular truck service out of Raleigh; that it served Franklinton and 
other local points in the vicinity and that shippers naturally expected that it 
could give this service to Louisburg without any undue inconvenience in 
serving its other customers between Raleigh and Henderson, and Henderson 
and Durham. 

The application of the Raleigh-Danville Motor Express includes a proposal 
to serve Warrenton, which was opposed by the United Express and by the 
Seaboard Air Line Railway, but since the Raleigh-Danville Motor Express can 
serve Louisburg and Engleside over Highway No. 59 and then run into 
Henderson over Highway No. 39, a point which it has served since it began 
operation, it appears that since there is no objection to its serving Louisburg 
that this could be done without any serious competition with other carriers. As 
to the evidence in connection with the application of D. D. Jones Transfer and 



250 N. C. Utilities Commission 

Warehouse Company, it has interstate rights between Raleigh and Norfolk 
over the Highway applied for, as is evidenced by Interstate Commerce Commis- 
sion Docket No. MC 1630, and its application in this case is to acquire rights 
to deliver goods between points in the State of North Carolina and it appears 
from the evidence that there is little necessity for additional service between 
these points except for furniture and furniture manufacturer's products and 
accessories and materials used in the manufacturing thereof. A number of 
witnesses from principal points along the line testified that in their opinion 
the towns had sufficient freight service by trucks and railroads, but the evi- 
dence shows that considerable furniture comes through Raleigh from points 
west and could be transferred to D. D. Jones Transfer & Warehouse Company, 
Inc., for delivery to points on its line within the state, and few of the truck 
operators care to transport furniture because of its bulk and light weight, 
therefore, it does seem that this Commission can grant to the applicant in 
this case a restricted franchise for the transportation of such commodities. 

It appears from the record that the evidence fully sustains the findings 
of convenience and necessity as herein granted, therefore, it is 

Ordered, that the petition be granted in so far as the transportation of furni- 
ture, crated and uncrated, and furniture manufacturer's supplies and acces- 
sories, and that the application for the transportation of general commodities 
other than those named herein, be denied, and it is 

Further Ordered, that the application in Docket No. 1616 be granted to 
operate from Raleigh over Highway No. 59 to Engleside, via Louisburg and 
Rolesville, and from Engleside over Highway No. 39 to Henderson, via Epson. 

This the eighteenth day of September, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Dockets Nos. 1616 and 1814. 

APPLICATION OF S. & E. TRANSFER COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE FROM ELKIN TO NORTH WILKESBORO 
VIA RONDA AND ROARING RIVER. DOCKET No. 1915. (See C. & S. 
Motor Express Order. Docket No. 316.) 

APPLICATION OF S. & E. TRANSER COMPANY FOR 
FRANCHISE CERTIFICATE 

Order 

This Matter again comes before the Commission upon a written protest filed 
with the Commission January 15, 1940, by Mr. J. Wesley Lowther, of the 
Lowther Trucking Company, in which protest the Commission is asked : First, 
not to grant to the S. & E. Transfer Company a franchise certificate as ordered 
by the Commission on December 29, 1939; and second, that if said certificate 
is issued, that the operation of the S. & E. Transfer Company be restricted as 
set out in said protest. 

This matter was duly set for hearing on February 1, 1940, at which time 
Mr. Earl C. James, Attorney for the S. & E. Transfer Company appeared and 



Decisions and Adjustments of Complaints 251 

moved to dismiss the protest for the reason that the matters and things therein 
contained had been heretofore passed upon, and completely adjudicated by this 
Commission, and that the Lowther Trucking Company had filed no exceptions 
to the order of this Commission, and that it was now too late for the filing of 
exceptions, and the order of the Commission of December 29, 1939, was final. 

Upon consideration of the motion to dismiss the protest, the Commission is 
of the opinion and so finds that the protest of the Lowther Trucking Com- 
pany was made too late, and the motion of the S. & E. Transfer Company is 
therefore, allowed, and the protest dismissed. 

Stanley Winborne, 

Commissioner. 

February 1, 1940. 

Docket No. 1495. 

APPLICATION OF S. & E. TRANSFER COMPANY FOR FRANCHISE 
CERTIFICATE FROM MOCKSVILLE, N. C, OVER HIGHWAYS Nos. 601 
AND 801 TO COOLEEMEE AND RETURN. 

Order 

This Cause arises upon Docket No. 1816, being the application of S. & E. 
Transfer Company to serve the town of Cooleemee from its regular line at 
Mocksville. 

The application was filed, set for hearing and advertised in accordance with 
law and heard on Tuesday, April 30th at 10:00 a.m. in the office of this Com- 
mission in Raleigh. 

The operation of the S. & E. Transfer Company at the time of the hearing 
had been leased to the Lowther Trucking Company for a period of six months 
and the applicant was represented by the lessee, Mr. J. W. Lowther of the 
Lowther Trucking Company, who was represented by Mr. H. 0. Woltz, Attor- 
ney at Law of Mount Airy, N. C, and S. & E. Transfer Company was repre- 
sented by Mr. Earl C. James, Attorney at Law of Elkin. Mr. George Ross of 
Capitol Coast Express, Raleigh, N. C, and Mr. Chas. E. Fredrickson of Fredrick- 
son Motor Express, Charlotte, N. C, were present and represented their inter- 
ests as truck operators and both stated that while they did not materially 
object to the S. & E. Transfer Company having the rights applied for, that they 
did prefer that Cooleemee be treated as an off-route point for any and all opera- 
tors who operate to or through Mocksville, as some freight comes from the east 
as well as the west and south, for delivery at Cooleemee and the distance 
between Mocksville and Cooleemee is so short that it is impracticable to unload 
freight in Mocksville for interchange to another line for delivery at Cooleemee. 

Evidence was presented which leaves no doubt that the applicant proved 
convenience and necessity for the extension applied for and it is further found 
that the request of other carriers who may operate into Mocksville would serve 
the convenience of the public if permitted to operate from Mocksville to 
Cooleemee if and when they have shipments for delivery therein, therefore, 
it is held that any right which may be granted the applicant in this case to 
operate between Mocksville and Cooleemee will not be exclusive, but the 
Capitol Coast Express and the Fredrickson Motor Express will be permitted 
to make deliveries in Cooleemee from Mocksville as an off-route point if and 



252 N. C. Utilities Commission 

when necessity may require, when not originating in or destined to Mocksville, 
therefore, it is 

Ordered, that the petition be granted and that Certificate No. 481 now out- 
standing in favor of S. & E. Transfer Company be amended to include from 
Mocksville over State Highway No. 601 to the Junction of Nos. 601 and 801; 
thence over No. 801 to Cooleemee with the reservation made above for other 
carriers having operating rights into and through Mocksville to use Cooleemee 
as an off-route point. 

This the first day of May, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1816. 

S. & E. TRUCKING CO. DOCKET No. 1495 

J. W. LOWTHER. DOCKET No. 1577 

BLIZARD MOTOR EXPRESS. DOCKET No. 1586 

Order 

This Cause arises upon the foregoing three applications which asked for 
franchises to operate trucks in the transportation of general commodities 
between Charlotte and Mount Airy over Highways 21, 268, and 601 via States- 
ville, Harmony, Elkin and Dobson, or parts of said route. 

Because of this fact all three cases were set for hearing at 10:00 o'clock on 
June 1, 1939, but disposition of same has been held in abeyance for decisions 
of I.C.C. Joint Board hearings. 

The Utilities Commissioner was called to Washington, D. C, on business the 
day before the hearing and it was announced that if there was no objection 
on the part of applicants or protestants I would take the evidence and report 
findings therein. This was agreed to by all present and the cases were called in 
their numerical order and appearances taken as follows: 

1495: Application of S. & E. Transfer Co., for franchise certificate to operate 
as motor vehicle carrier from Charlotte over US 21 via Statesville to 
Elkin to Mt. Airy over NC 268 and US 601; return to Mt. Airy to 
Mocksville via Yadkinville over US 601; to Statesville over US 64; 
to Charlotte over US 21. 
Applicant represented by Attorney Earl C. James, Elkin, N. C. 

1577: Application of Lowther Trucking Co., for franchise certificate to 
operate as motor vehicle carrier from Charlotte to Elkin via US 21; 
thence via 268 to Mt. Airy and 601 and return the same route. 
Applicant represented by Attorneys B. F. Williams, Lenoir, N. C; 
H. O. Woltz, Mt. Airy, N. C. 

1586: Application of Blizard Motor Express, Inc., for franchise certificate to 
operate as motor vehicle carrier from NC-VA Line on Hwy. 89 to 
Mt. Airy; from Mt. Airy via US 601 to intersection of US 601 with 
NC 268; thence over NC 268 to Elkin; thence over US 21 to Charlotte 
and return. 
Applicant represented by Attorney E. S. Hendren, Mt. Airy, N. C. 



Decisions and Adjustments of Complaints 253 

The Fredrickson Motor Express Corporation and the Winston-Elkin Lines 
protested through Attorney Norman Block of Greensboro, N. C, of the firm of 
Brooks, McLendon & Holderness. 

The applicants and protestants were asked if there was objection to con- 
solidating the cases and hearing them as one. This was agreeable and they 
were so heard. 

The Lowther Trucking Company of Charlotte has been operating since Sep- 
tember 5, 1932, has established a regular service between Charlotte and Mt. 
Airy via Davidson, Statesville, Harmony, Elkin, and Dobson. It makes a direct 
connection with Horton Motor Lines and according to the evidence is giving an 
interstate service that is highly satisfactory to the shippers of Mt. Airy and 
a service which witnesses testifying at the hearing believe no one else is in a 
position to give. This service is overnight between Charlotte and Mt. Airy 
and representative manufacturers testified that it had been operated at their 
request and that without it their businesses would be affected seriously because 
of the time limit in reaching the market in competition with their competitors. 

Mr. Fredrickson of the Fredrickson Motor Express of Charlotte offered evi- 
dence through himself and others that he operates from Charlotte to States- 
ville and Winston-Salem and could give the service by connection with Blizard 
Motor Express at Winston-Salem or if the application of the S. & E. Trucking 
Company in this hearing were granted he could give a Mt. Airy connection at 
Statesville. 

The S. & E. Trucking Company of Elkin at first applied to operate from 
Elkin to Statesville only. After the Lowther Trucking Company applied, it 
amended its application to include Charlotte to Mt. Airy. 

Much evidence was presented from witnesses in behalf of the S. & E. Truck- 
ing Company from Elkin and Yadkin County to the effect that they greatly 
needed a local line which could serve them out of Statesville in the daytime; 
that other truck services passed them in the night, and that they greatly 
desired the local service out of Statesville and Mt. Airy. 

The Blizard Motor Express made application but did not present it at the 
hearing; merely stating through its representative, Mr. Hendren, that it could 
give all the necessary service to Mt. Airy. No evidence was offered either for or 
against his contention. 

In conclusion, it appears that the service being offered by Lowther Truck- 
ing Company out of and to Charlotte for points north of Statesville is needed 
and should be granted; and that the service proposed by the S. & E. Trucking 
Company between Statesville and Mount Airy is needed and should be 
granted; and that the application of the Blizard Motor Express should be 
denied. 

R. 0. Self, 
Examiner. 

I hereby approve and adopt the above recommendation and order that same 
shall become effective of even date hereof. 
This the 29th day of December, 1939. 

Stanley Winborne, 

Commissioner. 
Dockets Nos. 1495, 1577 and 1586. 



254 N. C. Utilities Commission 

APPLICATION FOR THE SALE AND TRANSFER OF FRANCHISE CER- 
TIFICATE No. 443 FROM SAFEWAY COACH COMPANY TO VIRGINIA- 
CAROLINA COACH COMPANY. 

Order 

This Matter comes before the Commission upon the joint petition of the 
Safeway Coach Company, through its President Geo. W. Springle, and the 
Virginia-Carolina Coach Company, through its President R. C. Hoffman, Jr. 

The Safeway Coach Company has agreed to sell, and the Virginia-Carolina 
Coach Company has agreed to purchase, Certificate No. 443, issued by this 
Commission and now held by the Safeway Coach Company, together with all 
rights, title and interests which the Safeway Coach Company has by virtue 
of its operation under said Certificate, and both the vendor and vendee seek the 
approval of this Commission of said sale and transfer. 

Under said Certificate No. 443 the Safeway Coach Company is now operating 
motor busses for the transportation of passengers between Jacksonville, N. C, 
and Rocky Mount, N. C, via Richlands, Kinston, Snow Hill, Farmville, and 
Pinetops over Highway No. 258; then from Pinetops to Rocky Mount over 
North Carolina Highway No. 43. 

The Virginia-Carolina Coach Company is now operating motor busses for the 
transportation of passengers from Rocky Mount, N. C, to Richmond, Va., via 
Weldon, N. C. 

The Commission is familiar with the operations of both companies and 
knows the territory served by each. The Commission is also acquainted with 
the financial condition of both companies and is of the opinion that there is 
sufficient business along the lines served by the Safeway Coach Company to 
support a first-class bus line and that what is needed to make the service along 
this line compensatory is first-class equipment, which the financial condition 
of the Safeway Coach Company has not at all times been sufficient to provide. 

The acquisition of the Safeway Coach Company by the Virginia-Carolina 
Coach Company will make possible direct and through service from Rich- 
mond, Va., to Jacksonville, N. C, and with said service the public will be 
greatly advantaged. 

It is therefore believed that the approval of the purchase of the Certificate, 
now held by the Safeway Coach Company, by the Virginia-Carolina Coach 
Company will be definitely in the public interest. 

Wherefore it is Ordered, that the said purchase be and the same is hereby 
approved, effective when approval is obtained from the Interstate Commerce 
Commission. 

It is Further Ordered that when said approval is obtained from the Inter- 
state Commerce Commission that the said Safeway Coach Company shall sur- 
render its Certificate No. 443 to this Commission for cancellation, so that the 
rights therein contained may be included in the Certificate now held by the 
Virginia-Carolina Coach Company. 

This the 11th day of January, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1509. 



Decisions and Adjustments of Complaints 255 

APPLICATION FOR THE SALE AND TRANSFER OF FRANCHISE CER- 
TIFICATE NUMBER 441 FROM H. W. MERRITT, J. W. SMITH, AND 
J. C. HARRELL, PARTNERS, t/a SAFEWAY TRANSIT COMPANY. 

Order 

This Matter comes before the Commission upon the joint petition of 
H. W. Merritt, J. W. Smith, and J. C. Harrell, partners, t/a Safeway Transit 
Company and Safeway Coach Company, a corporation organized and char- 
tered under the laws of the State of North Carolina, dated November 29, 1937. 
The Safeway Transit Company has agreed to sell and the Safeway Coach 
Company has agreed to purchase the operating rights set out in Certificate 
No. 441, issued by this Commission and now held by the Safeway Transit 
Company, together with all rights, titles and interests which the Safeway 
Transit Company has by virtue of its operation under said certificate and 
both the vendor and vendee seek the approval of this Commission of said sale 
and transfer. Under said Certificate No. 441 the Safeway Transit Company is 
now operating motor buses for the transportation of passengers between Jack- 
sonville and Rocky Mount via Richlands, Kinston, Snow Hill, Farmville and 
Pinetops over Highway 258, thence from Pinetops to Rocky Mount over 
North Carolina Highway 43. 

Safeway Coach Company was organized and obtained its charter for the 
purpose of the purchase of this operation. 

The Commission is familiar with the vendor in this case and knows the 
territory served by it and is also acquainted with the financial conditions of 
both companies, and it is of the opinion that the public interest will be 
enhanced by the approval of this sale and it is there found to be in the public 
interest, wherefore, it is 

Ordered that said purchase be and the same is hereby approved and that a 
new certificate to be numbered 443 be given to the Safeway Coach Com- 
pany and that the Safeway Transit Company surrender its certificate No. 
441 for cancellation so that the rights therein may be included in Certificate 
No. 443 to the Safeway Coach Company. 

This order shall be effective December 8, 1937. 

Granted the seventh day of December, 1937. 

Issued March 21, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1168. 

PURCHASE BY SAFEWAY COACH COMPANY OF FRANCHISE CERTIFI- 
CATE No. 441 FROM H. W. MERRITT, J. W. SMITH AND J. C. HARRELL, 
PARTNERS, t/a SAFEWAY TRANSIT COMPANY. DOCKET No. 1168. 
(See Safeway Transit Company Order. Docket No. 1168.) 

APPLICATION OF SALISBURY-MOUNT AIRY COACH COMPANY (E. O. 
WOODIE) FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER FROM SALISBURY TO MOUNT AIRY. DOCKET 
No. 1524. (See E. O. Woodie Order. Docket No. 1524.) 



256 N". C. Utilities Commission 

PETITION OF SEABOARD AIR LINE RAILWAY RECEIVERS FOR FRAN- 
CHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
BETWEEN HAMLET, N. C, AND THE NORTH CAROLINA-SOUTH 
CAROLINA STATE LINE. 

Order 
This Cause arises upon the application of the Receivers of the Seaboard 
Air Line Railway for authority to operate motor vehicles in intrastate service 
between Hamlet, North Carolina, and the North Carolina-South Carolina State 
Line over Highway No. 77. 

The petition in this cause was filed March 5, 1937, but was not heard until 
the 12th day of January, 1938, for the reason that a similar petition asking for 
interstate rights was pending before the Interstate Commerce Commission and 
the applicant did not desire intrastate rights unless interstate rights could be 
obtained. 

Recently the petitioner has obtained authority from the Interstate Com- 
merce Commission to operate between Hamlet, N. C, and Columbia, South 
Carolina over Highway No. 77, and as there is at present no franchise carrier 
operating between Hamlet and the state line over Highway No. 77, the Com- 
mission is of the opinion that there is a public need and necessity for an intra- 
state highway operation between Hamlet and the South Carolina line, where- 
fore, it is 

Ordered that the same be granted, and that franchise certificate No. 422, 
now held by the Receivers of the Seaboard Air Line Railway be amended to 
include that portion of the State Highway No. 77 between Hamlet and the 
North Carolina-South Carolina State line, upon presentation. 
This the tenth day of August, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
(SEAL) 
Docket No. 975. 

COMPLAINT OF SEASHORE TRANSPORTATION COMPANY vs. THUR- 
MAN BENTON, MAIL CARRIER, BETWEEN NEW BERN, N. C, AND 
WILMINGTON, N. C, OVER HIGHWAY No. 17. 

Order 

(Commissioner Winborne being unable to participate in the hearing it was 
by consent of all parties present that the hearing was held by R. 0. Self, Chief 
Clerk, as Examiner.) 

This Cause arises upon the complaint of the Seashore Transportation Com- 
pany against Thurman Bennett, Mail Carrier over Highway No. 17 between 
New Bern and Wilmington on which Highway the Seashore Transportation 
Company holds Motor Vehicle Franchise under Chapter 136, Public Laws of 
1927 and amendments thereto. 

The Complainant shows that it holds franchise over Highway 17 between 
New Bern and Wilmington for the transportation of passengers and light 
express and complains that Mr. Thurman Bennett, holder and operator of mail 
contract car between the points named and over the said highway, has no 



Decisions and Adjustments of Complaints 257 

franchise for the transportation of passengers or light express between New 
Bern and Wilmington and intervening points daily. 

Summons was issued to the Respondent under Section 8 of the Motor 
Vehicle Act as Amended by the Session of the General Assembly of 1937, to 
appear for hearing before this Commission on October 18, 1938, and show 
cause, if cause he had, why he should not be restrained from such operation, 
as provided under Section 8 of Chapter 136, Public Laws of 1927 and Amend- 
ments thereto, referred to above. The case was heard as scheduled and those 
present at the hearing were Hon. D. L. Ward, representing the Complainant 
and Mr. Thurman Bennett, appeared in his own behalf, and stated that it had 
not been his intention to transport passengers; that he had a driver on the 
mail line who carried such passengers, if such were carried, and if such were 
transported by his driver on his mail car, he received no revenue therefrom, 
and stated that he would desist from such transportation in the future. Inspec- 
tor Wade appeared and gave evidence to the effect that he had followed Mr. 
Bennett's mail car and had ascertained that passengers had been carried and 
fees charged therefor. 

On November 12, 1938, we received a communication from Attorney Ward 
stating that Mr. West had caught Mr. Bennett loading two passengers and get- 
ting ready to collect fees from them, but Mr. Bennett wrote to us under the 
same date to the effect that he was preparing to leave New Bern and before 
he started, two persons stopped him and said they desired to ride, and while he 
was explaining to them that he could not carry them, Mr. West came up and 
assumed that he was preparing to carry them. Mr. Bennett desired that this 
explanation be placed in the order. 

In view of the evidence presented, it is found that Mr. Bennett's mail car, 
whether upon his consent or not, has been transporting passengers for com- 
pensation in violation of the statute made and provided in such cases, and it is 
therefore, 

Ordered that the Defendant, Thurman Bennett, and his employees, cease 
and desist from transporting passengers on said line, and it is, 

Further Ordered, that no further requirement as a result of this hearing and 
order will be demanded of the Respondent at this time, but if in the event that 
he violates this order by further transportation of passengers, then the full 
requirement of the statute will be revoked to cancel his license and take the 
matter up with the U. S. Postal Service. 

This fourteenth day of December, 1938. 

R. 0. SEiLF, 
Examiner. 

The foregoing opinion is hereby concurred in and adopted and the recom- 
mendations are hereby ordered, effective of even date hereof. 

Stanley Winborne, 

Commissioner. 
(SEAL) 
Docket No. 1435. 



17 



258 W. C. Utilities Commission 

PETITION OF SHELBY TRANSIT COMPANY FOR AUTHORITY TO 
INCREASE CAPITAL STOCK 

Order 

This Cause arises upon petition of the Shelby Transit Company for author- 
ity to increase its capital stock. 

When the Company was incorporated and certificated to operate a motor 
vehicle transit system in the vicinity of Shelby, North Carolina, it had out- 
standing, or has issued since: 398 shares of Common A Stock, par value 
$10.00 each, making a total of $3,980.00. It now desires to increase this Com- 
mon A Stock to 500 shares, $10.00 par value, making a total of present and 
proposed Common A Stock $5,000.00. In addition to the 500 shares of Common 
A Stock, it asks to issue an additional 500 shares of Common B Stock at 
$10.00 par value, making a total of $5,000.00, which will give the Company 
an authorized capital of $10,000.00. The Common B Stock is to be 6 per cent 
preferred, and no dividends are to be paid on the Common A Stock until 
the Company has paid 6 per cent on the Common B Stock. The holders of 
Common A Stock are to guarantee to the holders of Common B Stock both 
interest and principal. It is not proposed to sell this stock immediately or in 
total amount, but to sell same as it is needed in the business to purchase addi- 
tional equipment. 

From the report of the applicant it appears that its business is increasing 
and that the additional capital requested is necessary to meet the public con- 
venience and necessity in connection with the applicant's operation. 

Therefore, it is Ordered, That the petition be granted as requested. 

This the 16th day of December, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Docket No. 1483. 

TRANSFER OF OPERATING RIGHTS OF FRANCHISE CERTIFICATES 
Nos. 435 AND 334, NOW IN THE NAME OF SMITH'S TRANSFER COM- 
PANY, INC., TO SPENCER MILLER. 

Order 
Whereas, Spencer Miller d/b /a Boone Transfer Company, sold to Smith's 
Transfer Company, Inc., May 19, 1937, a certain franchise which has since been 
operated by Smith's Transfer Company, Inc., and the said transfer from Miller 
to Smith was approved by this Commission and by the Interstate Commerce 
Commission. It now appears that Smith's Transfer Company, Inc., failed to 
meet all the obligations incurred in connection with the purchase and it has 
become necessary for Spencer Miller to foreclose certain mortgages in connec- 
tion therewith. In order to do this he has caused same to be sold at public 
auction and bid in the franchise himself, which franchise has been surrendered 
by Smith's Transfer Company, Inc., to the said Spencer Miller, in contempla- 
tion of which the Interstate Commerce Commission in Docket No. MC-FC 
11935 has approved the said transfer back to the said Spencer Miller, and it is 
now 



Decisions and Adjustments of Complaints 259 

Ordered and Decreed, that the said transfer from Smith's Transfer Company, 
Inc., to Spencer Miller is hereby approved and when said Spencer Miller pre- 
sents to this Commission a certificate from the Clerk of the Court showing that 
the indebtedness of Smith's Transfer Company, Inc., to the said Spencer Miller 
has been satisfied by the transfer of the said certificate referred to above and 
the certificate surrendered to this office, the certificate will be cancelled and a 
new certificate will be issued to the said Spencer Miller covering the highways 
included in the original sale to Smith's Transfer Company, Inc. 

This fifth day of June, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 958. 

ACQUISITION OF CERTAIN FRANCHISE RIGHTS OF SMITH'S 
TRANSFER COMPANY, INC. 

Order 

This Cause arises upon the application of Spencer Miller, d/b/a Boone 
Transfer Company, for the transfer of the franchise rights now set forth in 
Franchise Certificate No. 435. 

It appears that from the record these franchise rights were originally pur- 
chased from Spencer Miller d /b/a Boone Transfer Company by Smith's Trans- 
fer Company, Inc., and transfer to the said Smith's Transfer Company, Inc., 
was made, subject to a mortgage executed by Smith's Transfer Company, Inc., 
for deferred payments on equipment. It became necessary for Spencer Miller to 
foreclose on the mortgage and, in the meantime, lease the equipment from 
Smith's Transfer Company, Inc., who has been operating it as Boone Transfer 
Company under lease pending foreclosure proceeding. Spencer Miller has now 
presented to this Commission a copy of the Order of the Superior Court in the 
matter of C. M. McClung & Company, Inc., et al. vs. Smith's Transfer Com- 
pany, Inc., and Spencer Miller which order is dated July 1, 1939, by which 
reference the said Court Order is made a part hereof and attached hereto. 

It appears that one "Wade C. Brown was appointed receiver of Smith's 
Transfer Company, Inc., with authority to sell the equipment in question and 
the equipment was purchased at auction by Thomas R. Miller who has in turn 
transferred same to Spencer Miller; therefore, this order has to do specifically 
with the transfer of the operating rights contained in Certificate No. 334 
transferred to Smith's Transfer Company, Inc., under date of May 19, 1937, 
but now should be stricken from the Smith's Transfer Company, Inc., operat- 
ing records and transferred to Spencer Miller d/b/a Boone Transfer Com- 
pany; therefore, it is 

Ordered, That certificate be reissued to Boone Transfer Company containing 
the same rights and privileges as originally contained in Certificate No. 334, 



260 N. C. Utilities Commission 

which was cancelled at the time the same was transferred to Smith's Transfer 
Company, Inc. 

This twenty-eighth day of November, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 958. 

UTILITIES COMMISSIONER vs. SMITH'S TRANSFER COMPANY, 

INC., ET AL. 

Order 

This Cause arises upon complaint of competitive carriers and the Commis- 
sion issued the following citation to T. Glenn Miller, Jr., Owner, Miller Motor 
Lines, Lenoir, N. C, C. H. Smith, Lenoir, N. C, Partner and/or Manager of 
C. H. and V. J. Smith, trading as Smith's Transfer Company, Lenoir, N. C; 
V. J. Smith, Asheville, N. C, Agent and Manager, Smith's Transfer Company 
of Lenoir, N. C, and/or C. H. and V. J. Smith t/a Smith's Transfer Company, 
and/or Smith's Transfer Company, Inc., Lenoir, N. C, T. Glenn Miller, Presi- 
dent, and/or V. J. Smith, C. H. Smith, and T. Glenn Miller, individually and T. 
Glenn Miller, President, Smith's Transfer Company, Inc., Lenoir, N. C, as 
follows: 

"You are hereby commanded to summons * * *, if found to be within your 
county, to appear before the Utilities Commissioner of the State of North 
Carolina at a hearing to be held at the Utilities Commissioner's Office in the 
State Departments Building in the City of Raleigh, N. C, on February 2, 1939, 
at 10:00 o'clock a.m., and show cause, if any, why an order requiring the sus- 
pension of the practice of transporting freight and express intrastate over 
Highway 74 between Asheville and Charlotte, and between Charlotte and 
Hickory over Highways 27, 321, and 70, by any and all of the carriers named in 
the foregoing, should not be made as may be deemed proper under Section 8, 
Chapter 136, Public Laws of 1927, as amended by Chapter 240, Public Laws of 
1937, and also revoking all Franchise Certificates, permits and authorities to 
operate intrastate in North Carolina as provided in Sections 8, 10, 16 and 18, 
Chapter 136, Public Laws of 1927, and amendments thereto. 

"Let the defendant, * * *, take notice that if he shall fail to appear on the 
day named, the Commissioner will make such an order as the facts justify 
under the law. 

"Herein fail not and of this summons made due return." 

The case was adjourned from February 2, 1939, to February 15, 1939, at 
which time hearing was held and the respondents appeared and were repre- 
sented by Major L. P. McLendon, Attorney at Law, Greensboro, N. C, and 
Mr. C. H. Fredrickson, for the plaintiffs, represented himself and after both 
parties had testified with reference to conditions which existed and violations 
which were alleged, it was agreed by and between V. J. Smith and Glenn 
Miller, representing the interest cited to appear at the hearing, and Charles H. 
Fredrickson, representing Fredickson Motor Express Corporation, as follows: 

"It is agreed between parties that Mr. Fredrickson's Line shall extend from 
Hickory to Asheville and that his franchise certificate shall be so amended as 



Decisions and Adjustments of Complaints 261 

to give him franchise rights from Hickory to Asheville over Route 70. It is 
likewise agreed that Smith's Transfer Company shall have franchise 
rights from Hickory to Charlotte via 70 and 21, and that its certi- 
cate shall be so amended as to give him these rights. It is further agreed that 
Smith's Transfer Company shall have a certificate from Charlotte to Denver 
and Denver to Lincolnton, and Lincolnton by way of Toluca to Morganton; and 
that this cause now before this Commission on exceptions be dismissed." 

Hearing was held on Dockets Nos. 1000 and 1005 prior to the hearing on 
Docket No. 1535 and was dismissed but this agreement now provides that this 
be granted and that Smith's Transfer Company's Certificate be amended to 
include Highway No. 271 between Charlotte and the intersection with High- 
way No. 150 near Denver; thence through Lincolnton without pick-up or 
delivery in Lincolnton; thence over Highway No. 150 and No. 27 to the inter- 
section of No. 18 near Toluca; thence with Highway No. 18 to Morganton. 

In consideration of the foregoing, it is 

Ordered, that the certificate of each carrier, namely, C. H. and V. J. 
Smith, trading as Smith's Transfer Company, Lenoir, N. C, holding Certifi- 
cate No. 142, and Fredrickson Motor Express Corporation, Charlotte, N. C, 
holding Certificate No. 70, be amended in accordance with the above agree- 
ment and it is 

Ordered Further, that the above carriers furnish to the Commission the 
original copies of the certificates referred to above for amendment. 

This the fifth day of April, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1535. 

APPLICATION OF SMITH'S TRANSFER COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE TRUCK FROM MORGANTON TO CHAR- 
LOTTE VIA TOLUCA, LINCOLNTON AND DENVER. DOCKET No. 1005. 
(See Fredrickson Motor Express Corporation Order. Docket No. 1000.) 

APPLICATION SMOKY MOUNTAIN STAGES, INC., FOR INTRASTATE 
FRANCHISE TO OPERATE MOTOR VEHICLES FOR THE TRANS- 
PORTATION OF PASSENGERS BETWEEN THE JUNCTION OF N. C. 
HIGHWAY 19 (OLD NO. 10) WITH N. C. NO. 107 HIGHWAY AND OVER 
N. C. NO. 107 FROM THE JUNCTION OF SAID HIGHWAY TO THE N. C. 
AND TENN. STATE LINE AT NEWFOUND GAP IN THE GREAT SMOKY 
MOUNTAINS NATIONAL PARK, AND OVER HIGHWAY 112 FROM 
CHEROKEE P. O. TO HIGHWAY 19. 

Order 

The application in this case was filed on February 21, 1935. The Commission 
on April 20, 1935, issued an order in part as follows: 

"Application was filed sixty days ago and under the Bus Law will expire 
unless heard, and the Commission not being in a position to hear the appli- 
cation at this time because of its not being advised the attitude of the U. S. 
Department of Interior with reference to issuing franchises in Federal Parks, 



262 N. C. Utilities Commission 

the same is hereby postponed indefinitely until the attitude of the Park 
Service can be ascertained with reference to the disposition of traffic within 
the park." 

Since the above order was issued, it has been learned that the Federal Park 
Service does not have title to the Highway in question over which the ap- 
plicant in this case desired to operate and the application was set down for 
hearing and heard on November 17, 1936. Mr. W. R. Francis, Waynesville, 
N. C, and Dan K. Moore, Sylva, N. C, Attorneys at Law, represented the ap- 
plicant, and L. L. Froneberger of Asheville represented the Smoky Mountain 
Tours, Inc. 

The applicant, according to the evidence, operates a common carrier service 
over Highway No. 19 (old No. 10) between Asheville and Murphy and from 
Murphy to Chattanooga, Tennessee, and from Asheville on Highway No. 19 
and No. 23 via Waynesville, Sylva, and Franklin to Cornelia, Georgia, giving 
direct connection at Cornelia, Ga. to Atlanta, Ga., and by this application 
desires to give a through service from Asheville to Gatlinburg, Tenn., there 
making connection with Tennessee carriers for Knoxville and points west, 
and possibly making a potential scenic short route between Atlanta, Ga., and 
Knoxville, Tenn. The route applied for by the applicant is a distance of ap- 
proximately 22 miles from the intersection of route No. 19 near Whittier, 
N. C. to the N. C.-Tenn. line in the National Park, and evidence was presented 
to the Commission to show that this applicant had made application to the 
Interstate Commerce Commission for authority to extend the operations inter- 
state 17 miles further to Gatlinburg, Tenn., connecting with a schedule oper- 
ation between Gatlinburg and Knoxville, Tennessee, which connection will 
give a schedule service through the Park to Knoxville on the west and it is the 
desire of the applicant to operate this service from Gatlinburg probably back 
to Asheville if and when the demand of the public will justify the service, 
otherwise connecting with the main line bus service from Asheville to Murphy 
and Chattanooga. 

The applicant further states that his operating extensively in the territory 
will be enhanced by this additional service and therefore will greatly benefit 
the traveling public by having this schedule connection across the Park. 

The evidence presented showed that public convenience would be greatly 
enhanced thereby. 

The protestant, The Smoky Mountain Tours, Inc., objected to the application 
on the ground that the Tours Company has for a number of years operated a 
scenic bus service out of Asheville, and indicated that this service would have 
a tendency to destroy the value of its scenic tours during the tourist season, 
but the regular schedule will probably carry people in business and persons on 
vacation will patronize as usual the Tours service as the Tours service is 
organized to meet the convenience of such. The Tours Company has not made 
application to this Commission for this service. It only opposed the applica- 
tion of the Stages Company because of effect its operation may have upon the 
Scenic Tours service. 

During the hearing, it was learned that pending cases of the applicant and 
protestant for this service had not been heard by the Interstate Commerce 
Commission; therefore, order was withheld in this case until such hearing and 
certification by Joint Board No. 7 of the Interstate Commerce Commission and 
such other Division of the Interstate Commerce Commission as it may go to. 



Decisions and Adjustments of Complaints 263 

Information now comes to this Commission to the effect that the Smoky- 
Mountain Tours, Incorporated, has been given a certificate through the Park 
to operate a tourist service which leaves the applications for common carrier 
service pending with the Interstate Commerce Commission on appeal from 
Joint Board Number 8. The granting of this application by this Commission 
will give the applicant, the Smoky Mountain Stages, Inc., authority only to 
operate intrastate for a distance of 22 miles from the intersection of Highway 
107 with Highway 19 to Newfound Gap on the N. C.-Tenn. State line, and this 
Commission feels that it cannot deprive the inhabitants along that part of 
route 107 and number 112 intrastate service, since no carrier has intrastate 
nor interstate common carrier service thereon. It is believed that the Smoky 
Mountain Stages, Inc., is in the best position to render the common carrier 
service, therefore, the petition of the applicant, the Smoky Mountain Stages, 
Inc., is hereby granted and Certificate No. 400 now outstanding in favor of the 
Smoky Mountain Stages, Inc., will be amended upon presentation to include 
the Highway between the junction of No. 19 with No. 107 and No. 112, and over 
107 and 112 to the Tennessee line at Newfound Gap. 

The foregoing part of this order was written September 3, 1937, but not 
issued for the reason that the applicant, the Smoky Mountain Stages, Inc., was 
an interstate operator and under the rules of the Interstate Commerce Com- 
mission was not permitted to extend its operations before obtaining that Com- 
mission's consent, therefore, issuance was withheld pending the action of the 
Federal Authority on said case. 

I am now advised by the Interstate Commerce Commission by copy of order 
dated November 29, 1938, that Division 5, I.C.C., has denied the application of 
Smoky Mountain Stages, Inc., for the extension under consideration in the 
application. Since the action of Division 5, I.C.C. has denied to the Smoky 
Mountain Stages, Inc., the right to operate across the line on Highway route 
No. 107 to Gatlinburg, this Commission does not feel that an independent 
operation operating a distance of 40 miles will make a success thereof. Our 
consideration of the matter in the first place was merely to provide a short 
route passage travel between points on the south and points northwest as it is 
a shorter distance between Atlanta and Knoxville over this route than it is 
between Atlanta and Knoxville by Chattanooga, and we are of the opinion 
that this fact had something to do with the volume of opposition to the Stages 
Company's application, but however that may be, since the action of the 
Interstate Commerce Commission in turning down the application of the 
Stages Company to operate across the Park into the State of Tennessee, this 
Commission finds it expedient to change its original order hereinbefore 
mentioned so as to limit the extension of this proposed operation of the 
Stages Company to the Town of Cherokee, as this town is the seat of activities 
within the Indian Reservation and the location of the Government Indian 
School, therefore, it is 

Ordered That the petition be granted to the extent of giving the Smoky 
Mountain Stages, Inc., intrastate franchise between the intersection of High- 
way 107e with Highway No. 19 and also over Highway No. 17 w (Formerly No. 
112) which Highway intersects with No. 19 near Ela and 107 near Cherokee, 
and Certificate No. 400 will be amended accordingly upon presentation. This 
Order is intended to give common carrier intrastate service to the Town of 
Cherokee and the inhabitants between that Town and Highway No. 19, and 



264 N". C. Utilities Commission 

if and when the Smoky Mountain Stages, Inc., is granted the right to operate 
interstate to Gatlinburg, Tennessee, the intrastate franchise will be extended 
to the State Line. 

This November 30, 1938. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 
R. O. Self, Chief Clerk. 
Docket No. 321. 

APPLICATION OF SMOKY MOUNTAIN STAGES, INCORPORATED, TO 
EXTEND ITS OPERATION OVER STATE HIGHWAY NO. 106 FROM 
CULLOWHEE TO CASHIERS VIA EAST LAPORT, TUCKASEIGEE AND 
GLENVILLE WITH RICH MOUNTAIN AS AN OFF-ROUTE POINT. 

Order 

This Cause arises upon the application referred to above filed with this 
Commission, advertised in accordance with law and heard on June 10, 1938 at 
2:30 p.m. The petitioner was represented by Mr. J. R. Lewis, Secretary and 
Treasurer of Smoky Mountain Stages, Incorporated. No protestants appeared. 
The petitioner offered evidence to show that it now operated N. C. Highway 
No. 106 from its intersection with U. S. Highway No. 10 at Sylva to Cullowhee, 
and that it also operated over U. S. Highway No. 64 to the intersection of 
N. C. Highway No. 106 at Cashiers, and that if it obtained the remainder of 
N. C. 106 asked for in this application that it would coordinate its operation 
on J. S. 10 and that on U. S. No. 64. 

The petitioner presented evidence to show that the granting of this applica- 
tion was in the interest of public convenience and necessity and that the 
reason that action on the application had not been requested was because of 
work on N. C. Highway No. 106 not being completed, but now that the route 
is in condition to be operated from Cullowhee to Cashiers that public con- 
venience demands this service during the coming summer, therefore, it is 

Ordered, That the petition be granted and that the petitioner's Certificate 
No. 400 be amended to include this operation upon presentation, and the 
petitioner is hereby authorized to file schedules and tariffs and to begin this 
operation at its convenience within thirty (30) days from the date after a 
similar approval from the Interstate Commerce Commission. 

This the 15th day of May, 1940. 

Stanley Winborne, 

Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1303. 



Decisions and Adjustments of Complaints 265 

APPLICATION SOUTHERLAND BROTHERS FOR FRANCHISE CER- 
TIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER FROM GOLDS- 
BORO OVER HIGHWAY NO. 70 TO INTERSECTION OF NO. 102; 
THENCE OVER NO. 102 TO SNOW HILL; THENCE OVER 258 TO FARM- 
VILLE; THENCE OVER AN UNNAMED UNNUMBERED COUNTY ROAD 
FROM FARMVILLE NORTHWEST TO BRUCE ON HIGHWAY NO. 43; 
THENCE OVER HIGHWAY NO. 43 TO GREENVILLE. 

Order 

This Cause arises upon the application of Southerland Brothers in Docket 
No. 1751 outlined above, filed November 17, 1939, set for hearing and heard on 
February 15, 1940. 

The petitioner was represented by Mr. Kenneth Royal, Attorney at Law of 
Raleigh and Goldsboro, and Mr. Malcolm Southerland, the petitioner was 
present. 

Evidence was presented to show that the operation was in the public interest 
and that the operation between Farmville and Snow Hill would be subject to 
the prior rights of the Virginia-Carolina Coach Company, a subsidiary of the 
Carolina Coach Company, and that no service was now being operated on the 
remainder of the line in question. The application was amended at the hearing 
to include the unnamed and unnumbered County Road between Farmville 
and Bruce and Bruce to Greenville over Highway No. 43. 

No protestant appeared, therefore, it appears that the granting of this ap- 
plication is in the public interest, and it is 

Ordered That the application be granted and that Certificate No. 33 now 
outstanding in favor of Southerland Brothers, be presented for amendment, to 
include the routes herein outlined, and that applicant begin operation within 
thirty days after date of this order, unless further ordered. 

This the nineteenth day of February, 1940. 

Stanley Winborne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1751. 

SOUTHERLAND BROTHERS (N. M. SOUTHERLAND) ORDER AUTHOR- 
IZING TRANSFER OF FRANCHISE RIGHTS TO CAROLINA COACH 
COMPANY. DOCKET NO. 1959. (See Carolina Coach Company Order. 
Docket No. 1959.) 

PETITION OF M. L. STALLINGS, d/b/a STALLINGS TRANSFER TO 
TRANSFER CERTIFICATE NO. 227 TO L. RUSSELL STALLINGS, MRS. 
ANNIE STALLINGS, AND JOHN L. BARBEE, TRADING AS STALLINGS 
TRANSFER SERVICE; ALL PARTIES OF SPRING HOPE, NORTH 
CAROLINA. 

Order 

This Cause arises upon the application of M. L. Stallings, d/b/a Stallings 

Transfer of Spring Hope, North Carolina, to transfer all the rights, titles and 

interests in Certificate No. 227 to L. Russell Stallings, Mrs. Annie Stallings, 

and John L. Barbee, trading as Stallings Transfer Service, and the parties to 



266 N". C. Utilities Commission 

Stallings Transfer Service having furnished the information required by the 
Commission for the purchase of such operations and the Commission having 
given full consideration to all the matters required by law pertaining thereto, 
it is found that the granting of the application for the transfer is in the 
interest of public convenience and necessity, therefore it is 

Ordered That the petition be granted, and that said Certificate No. 227, now 
in the name of M. L. Stallings, d/b/a Stallings Transfer be transferred to the 
Stallings Transfer Service, and that this order be made effective this day. 
This the fifteenth day of October, 1937. 

(S) Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1753. 

APPLICATION OF TATUM-DALTON TRANSFER COMPANY TO OPERATE 
AS MOTOR VEHICLE CARRIER OF FREIGHT FROM GREENSBORO 
TO KERNERSVILLE VIA U. S. HIGHWAY 421 BY WAY OF FRIEND- 
SHIP; THENCE VIA N. C. HIGHWAY 703 TO WINSTON-SALEM; 
THENCE TO MT. AIRY VIA U. S. HIGHWAY 52 BY RURAL HALL, KINGS 
AND PILOT MOUNTAIN. 

Order 
This Matter again comes before the Commission upon notification, dated 
August 16, 1940, of Hon. I. M. Bailey, Attorney of Record for the applicant, 
that the applicant desires to withdraw its application. 

Said notice to the Commission in the form of a letter from Hon. I. M. 
Bailey is in words as follows: "I wish to advise you that Tatum-Dalton Com- 
pany has decided to withdraw its application for a franchise from Greensboro 
to Mt. Airy via Winston-Salem." 

Wherefore it is Ordered That the application be and the same is hereby 
dismissed. 

This the 28th day of August, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
Docket No. 1952. 

APPLICATION OF TEXTILE TRUCKERS, INC., FOR FRANCHISE CER- 
TIFICATE TO OPERATE FROM MOUNT AIRY TO ELKIN, STATES- 
VILLE AND CHARLOTTE. DOCKET NO. 1719. (See C & S Motor Express 
Order. Docket No. 316.) 

THURSTON MOTOR LINES (D. J. THURSTON, JR.). PURCHASE OF 
CAPITAL COAST EXPRESS COMPANY, INC., CERTIFICATES AND 
FRANCHISE RIGHTS. DOCKET NO. 2087. (See Capital Coast Express 
Company, Inc. Docket No. 2087.) 



Decisions and Adjustments of Complaints 267 

APPLICATION OF TRAPHILL BUS COMPANY FOR A FRANCHISE CER- 
TIFICATE TO OPERATE PASSENGER BUSES BETWEEN DOUGHTON, 
N. C, AND WILKESBORO, N. C, BY THE TOWNS OF TRAPHILL AND 
HAYES. 

Order 
This Cause arises upon the application of D. C. Castevens, doing business 
as Traphill Bus Company, for a franchise certificate to operate a bus line over 
a county road by the Town of Doughton, N. C, and the Town of Wilkesboro, 
N. C, said operation to be wholly within the County of Wilkes. 

This case was set for hearing and advertised according to law, and was 
heard on September 28, 1938, in the office of the Utilities Commission in 
Raleigh. The applicant was represented by Attorney T. R. Bryan of Wilkes- 
boro, N. C. 

No protests were entered at the hearing and only sufficient evidence was 
presented for the applicant to endeavor to prove public convenience and 
necessity. 

The applicant is a mail carrier and desires authority to carry passengers on 
the mail line. Since no other applicant is proposing to offer better service 
over this Highway, we do not feel like depriving the public of this opportunity 
of a public conveyance between these two towns. I believe that if it were not 
for the operation of the mail line the service could not be given between these 
two points. Therefore I am willing to give the applicant the benefit of the 
doubt and grant his application if he is able to file insurance and otherwise 
comply with the law. 

Therefore, it is Ordered, That the petition be granted, and when the ap- 
plicant has filed insurance and otherwise given us evidence of his ability and 
willingness to comply with the provisions of the statute and the Rules and 
Regulations of this Commission, certificate will be issued to him for the route 
applied for. 

This the 7th day of December, 1938. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1220. 

SALE OF CERTIFICATE NO. 437 BY W. E. COLE d/b/a TURNER'S TRUCK- 
ING LINE TO NEMIAH GOLDSTEIN AND RAYMOND G. SMITH d/b/a 
TURNER'S TRUCKING LINE. 

Order 
Joint application having been received from W. E. Cole, who holds Cer- 
tificate No. 437 for the operation of motor vehicles in the transportation of 
property between Asheville and Hendersonville over Highway No. 25, and to 
Brevard over Highway No. 64; thence from Brevard over Highways Nos. 280 
and 191 to Asheville; thence to Toxoway over Highway No. 64 via Rosman, 
and Nemiah Goldstein and Raymond G. Smith, d/b/a Turner's Trucking Line, 
as bailee, for the transfer of this operation in accordance with Section 5, 
Chapter 136, Public Laws of 1927, and amendments thereto, the said applicants 
were required to file with the said application copy of bill of sale duly ex- 



268 N". C. Utilities Commission 

ecuted by W. E. Cole and copy of mortgage in the sum of $3,000, payable within 
three years from October 18, 1939, and such other information as the Com- 
mission requires under the laws made for the regulation of motor traffic upon 
the highways of North Carolina, and the Commission having considered these 
matters and made investigation the conclusion has been reached that the 
transfer of this certificate with the operating rights contained therein is in the 
public interest; therefore, it is 

Ordered, That the transfer be made and Certificate No. 472 be issued to the 
purchasers, subject to the conditions set forth in deed of trust dated October 
18, 1939, which requires compliance on or before thirty-six months from said 
date and that Certificate No. 437 be held for cancellation upon the payment of 
said mortgage ; therefore, it is 

Further Ordered, That the purchasers notify this Commission when said 
mortgage has been satisfied by filing with this Commission a receipt showing 
the cancellation of said mortgage in order that Certificate No. 437 may be 
cancelled. It is 

Further Ordered, That the transfer of this certificate and operating rights 
be effective as of October 18, 1939, and if anything arises to prevent the trans- 
fer at that time the officials in charge of the operation shall notify this Com- 
mission of the date the transfer is effective. 

This the 18th day of October, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1724. 

PURCHASE BY VIRGINIA-CAROLINA COACH COMPANY OF FRANCHISE 
CERTIFICATE NO. 443 FROM SAFEWAY COACH COMPANY. DOCKET 
NO. 1509. (See Safeway Coach Company Order. Docket No. 1509.) 

VIRGINIA-CAROLINA TRANSPORTATION COMPANY. TRANSFER OF 
OPERATING RIGHTS FROM HABIT BROTHERS (JOHN HABIT AND 
JOE HABIT). DOCKET NO. 1655. (See Habit Brothers. Docket No. 1655.) 

APPLICATION OF VIRGINIA-CAROLINA COACH COMPANY AND IN RE: 
APPLICATION OF CENTRAL COACH LINES, INCORPORATED, TO 
SERVE MACCLESFIELD, N. C. 

Order 
This Cause arises upon the application of the above companies. The Vir- 
ginia-Carolina Coach Company of Richmond, Virginia, operates buses between 
Rocky Mount, N. C. via Highways Nos. 43, 42 and 258, destination, Jackson- 
ville, N. C, and the citizens of Macclesfield, N. C. being desirous of bus service 
at the present time and the applicant is desirous of furnishing said service, 
deviating only a few miles from its present operation so as to serve Maccles- 
field and not leave out any villages and towns which it now serves, and repre- 
sentatives of the applicant believe that they can operate over a County Road 
between Pinetops and Macclesfield, N. C, a distance of three and a fraction 
miles, and operate from Macclesfield, N. C. to Crisp, N. C, and take up its 



Decisions and Adjustments of Complaints 269 

regular line. This would necessitate adding to the franchise of the applicant, 
the County Highway between Pinetops and Macclesfield via the High School 
and from Macclesfield to Crisp. To do this would give the people of Maccles- 
field an opportunity to travel over their nearest road to points north and to 
points south. 

The Central Coach Lines, Incorporated, makes application to operate by 
Macclesfield over County Highway via High School to Pinetops, N. C, where 
it would take up its regular line, destination Tarboro. The people of Maccles- 
field are desirous of this so as to reach Tarboro for connection to points East 
and North and also to reach Wilson and points Southwest. To do this would 
necessitate adding to the franchise of the Central Coach Lines, Incorporated, 
that part of Highway 124 between its junction with No. 42 and Macclesfield 
and the County Highway between Macclesfield and Pinetops, N. C, via High 
School. This would make all of the highway between Macclesfield and Pine- 
tops a common highway for both applicants in this case and would give 
Macclesfield, as well as other points in the immediate vicinity, very good bus 
service. 

Because no carriers are affected other than the applicants because of the 
proximity of Macclesfield to both their lines, these applications are being 
granted without hearing and because no other carriers could serve this 
point, and both carriers have agreed to do so in the manner outlined above, 
therefore, after consultation with the applicants and consideration of the 
requests from the citizens of Macclesfield, it is 

Ordered That both applications be granted and Certificate No. 440 of the 
Central Coach Lines, Incorporated, and Certificate No. 428 of the Virginia- 
Carolina Coach Company be and the same are hereby amended each as 
follows: 

Certificate No. 440, Central Coach Lines, Incorporated, to include from the 
intersection of No. 124 with No. 42 to Macclesfield over No. 124, thence over 
County Highway via High School to Pinetops. 

Certificate No. 428, Virginia-Carolina Coach Company to include County 
Highway via High School between Pinetops and Macclesfield, thence over 
No. 124 from Macclesfield to Crisp, N. C, and it is 

Further Ordered That said certificates be amended upon presentation. 

This the twenty-third day of November, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1759. 

VIRGINIA DARE TRANSPORTATION COMPANY. PURCHASE OP FRAN- 
CHISE CERTIFICATE NO. 233, HELD BY HABIT BROTHERS MOTOR 
LINE. DOCKET NO. 1456. (See Habit Brothers Motor Line. Docket No. 
1456.) 



270 N. C. Utilities Commission 

VIRGINIA DARE TRANSPORTATION COMPANY. SALE AND TRANSFER 
OF CERTAIN CERTIFICATE RIGHTS FOR TRANSPORTATION OF 
FREIGHT AND EXPRESS TO NORFOLK SOUTHERN BUS CORPORA- 
TION. DOCKET NO. 1951. (See Norfolk Southern Bus Corporation. Docket 
No. 1951.) 

APPLICATION OF WACCAMAW STAGES, INC. (T. AND C. BUS COM- 
PANY), WHITEVILLE, N. C, FOR FRANCHISE CERTIFICATE TO 
OPERATE AS MOTOR VEHICLE CARRIER OVER FEDERAL HIGHWAY 
NO. 701, FROM CLARKTON, N. C. TO THE SOUTH CAROLINA LINE ON 
THE EDGE OF TABOR CITY. 

Order 
This Cause arises upon the application of T. & C. Bus Line for Franchise 
Certificate to operate as motor vehicle carrier over Federal Highway No. 701, 
from Clarkton, N. C. to South Carolina State Line, via Whiteville and Tabor 
City. This application was published in the press in a paper in circulation in 
that territory in accordance with law. When the case was called for hearing, 
Mr. K. J. Kindley, representing the petitioner, asked that the application be 
amended to show applicant as a joint applicant, Hal J. Love and W. L. 
Turbeville, and stated that it was the intention of the applicant to form a 
corporation if the petition was granted before operation was begun. 

No opposition was registered at the hearing and Mr. Kindley, representing 
the Queen City Coach Company, stated that they would be glad for the applica- 
tion to be granted for the reason that they would like to arrange for this 
operation to continue from Clarkton over same Highway No. 701 to Elizabeth- 
town for the purposes of connecting with the Queen City Coach Company 
Lines. There was no evidence presented to show that there was any service on 
the line applied for, and considerable evidence was offered to the effect that 
the service which is to be offered by the applicant is greatly desired by the 
people who live along that Highway and others who would travel over it. 

Taking into consideration all the evidence presented, it is hereby found that 
public convenience and necessity requires the operation, therefore, it is 

Ordered That the petition be granted, and that the certificate when issued, 
be issued to Waccamaw Stages, Incorporated, if and when the applicants 
otherwise comply with the statutes by filing motor vehicle specifications and 
insurance. 

This the twenty-fourth day of February, 1939. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1446. 

APPLICATION OF WACCAMAW STAGES, INC., FOR TEMPORARY FRAN- 
CHISE TO OPERATE BETWEEN ELIZABETHTOWN AND FAYETTE- 
VILLE, OVER HIGHWAY NO. 87 VIA DUBLIN AND TABOR CITY. 

Order 
This Cause arises upon the application of the above named carrier to 
operate from Elizabethtown to Fayetteville over Highway No. 87 via Dublin 



Decisions and Adjustments of Complaints 271 

and Tabor City. Applicant in this case holds a franchise from Tabor City to 
Clarkton over Highway 701, and by consent of the Queen City Coach Company 
operates from Clarkton to Elizabethtown over the same numbered highway. 

The applicant presents letters from the business people in Elizabethtown 
and vicinity endorsing the application and setting forth particularly that it 
is needed during the tobacco season which opens immediately. 

All carriers that could be effected by the operation have consented to giving 
six months temporary authority. The carriers consenting are, Queen City 
Coach Company, Carolina Coach Company, Central Coach Lines, and Atlantic 
Greyhound Corporation through their attorneys or managers. 

Since this is a temporary authority, no finding of fact is named except that 
from the letters of recommendation, it would indicate that such a service is 
greatly desired by the people who live along the line of the temporary opera- 
tion, and the temporary operation will demonstrate its necessity, therefore, 
it is 

Ordered, That the application be granted temporary authority not to exceed 
six months from date of this order, and the applicant is hereby authorized to 
begin such services immediately, as soon as tariffs and schedules can be posted. 

Because of the temporary nature of this authority, the certificate held by 
Waccamaw Stages, Inc., will not be amended until and unless this authority is 
made permanent after hearing. 

This the twenty-ninth day of July, 1939. 

Stanley Winbobne, 
Utilities Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1446. 

PETITION OF WILKES TRANSPORTATION COMPANY. 

Order 

This Cause arises upon the application of the Wilkes Transportation Com- 
pany for franchise certificate authorizing the operation of motor vehicles for 
transportation of passengers from North Wilkesboro over Highways Nos. 221 
and 16 to Millers Creek, Highway No. 18 to Fairplans, Highways Nos. 16 and 
18 to Moravian Falls, Highway No. 421 east to Wilkesboro, and over streets 
10th and D, 9th and C, B and 6th, 4th and F to corporate limits, and Main 
Street through the town of Wilkesboro. 

This case was set for hearing at 2:30 p.m., August 5, 1938. All parties entitled 
to notice were notified in accordance to law, and hearing was held on that 
date. 

At the hearing Attorney I. M. Bailey appeared for the Atlantic Greyhound 
Corporation in opposition to the application as applied for and stated that he 
objected to the applicant's operating from the City of North Wilkesboro to 
various points outside the city, particularly to Millers Creek and Moravian 
Falls. Attorney for the applicant asked him if he would object if schedules 
operated from or to those points were operated in the opposite direction instead 
of in the same direction at the same hour, and this was agreed to as the 
applicant desired to carry passengers who now have no way of coming into 
North Wilkesboro for work and returning to their homes from work. There- 



272 'N. C. Utilities Commission 

fore, the applicant in this case shall arrange its schedules accordingly. The 
applicant has obtained a franchise from the town in which it proposes to 
operate. 

From the evidence presented it appears that the granting of this application 
will be in the interest of convenience and necessity by providing a service 
which is not now enjoyed by the inhabitants of that city and community. 
Therefore, it is 

Ordered that the petition be granted and that certificate be issued when the 
applicant has presented acceptable insurance and otherwise complied with 
the law. 

This, the 22nd day of December, 1938. 

Stanley Winrorne, 
Utilities Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Docket No. 1305. 

APPLICATION OF E. 0. WOODIE, SALISBURY-MOUNT AIRY COACH 
COMPANY, FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER FROM SALISBURY TO MOUNT AIRY OVER HIGH- 
WAY 601 VIA MOCKSVILLE, YADKINVILLE, BOONVILLE, DOBSON, 
AND WHITE PLAINS. AMENDED TO INCLUDE HIGHWAY 67 FROM 
BOONVILLE TO ELKIN AND FROM ELKIN OVER HIGHWAY 268 BACK 
TO HIGHWAY 601. 

Order 
This Matter came on for hearing and was heard before the undersigned 
Commissioner in the Hearing Room of the Utilities Commission in the City of 
Raleigh, on October 17, 1939, upon an amended application of E. O. Woodie 
d /b /a Salisbury-Mount Airy Coach Company for franchise certificate to oper- 
ate as motor vehicle carrier of passengers from Salisbury to Mount Airy over 
Highway 601 from Salisbury to Boonville via Mocksville, Yadkinville, thence 
over Highway 67 from Boonville to Elkin, thence over Highway 268 from Elkin 
back to Highway 601, thence to Mount Airy via Dobson and White Plains and 
return. 

The applicant was represented by J. H. Folger, Attorney, Mount Airy 
and George R. Uzzell, Attorney, Salisbury. 

The protestants were represented as follows: Messrs. Smith, Leach 
and Anderson, attorneys, Raleigh, representing Carolina Coach Com- 
pany; Messrs. Bailey & Lassiter, attorneys, Raleigh, representing At- 
lantic Greyhound Corporation; R. G. Cherry, Gastonia, L. P. Mc- 
Lendon, Greensboro, and K. J. Kindley, Charlotte, attorneys, repre- 
senting Queen City Coach Company; W. H. McElwee, Attorney, North 
Wilkesboro, representing S. N. & S. Lines. 

Following the conclusion of the hearing, which began October 17, 1939, 
argument was deferred until December 11, 1939, pending the transcribing of 
the testimony. 

The evidence adduced in this case discloses that the towns of Mount Airy, 
Boonville, Elkin and Mocksville are all served by the Atlantic Greyhound 
lines from Winston-Salem and that Salisbury is on the main line of the Caro- 
lina Coach Company from Greensboro to Charlotte, with a connection at 



Decisions and Adjustments of Complaints 273 

Lexington with the Atlantic Greyhound line providing service to Raleigh and 
to Winston-Salem and beyond. Salisbury is also served by the Queen City 
Coach Co. through Statesville to Asheville, connecting with the Atlantic Grey- 
hound line at Statesville for Charlotte and beyond and for Mocksville and 
Winston-Salem. 

The proposed operation is practically north and south, whereas the service 
of the Carolina Coach Company and the Queen City Coach Company and the 
Atlantic Greyhound Corporation is east and west. Leaving Salisbury over 
Highway 601, the proposed route would cross the Atlantic Greyhound lines at 
Mocksville, Yadkinville and Boonville, and would run over the same Highway 
now served by the Atlantic Greyhound from Boonville to Elkin. From Elkin to 
Mount Airy there is no bus service, neither is there any service to the town of 
Cooleemee. 

At the present time a passenger traveling by bus from Mount Airy to Elkin 
must go by Winston-Salem a distance of 77 miles, whereas the distance from 
Mount Airy to Elkin over the proposed route is only 29 miles. The distance 
from Yadkinville to Elkin by way of Brooks Cross Roads over the Greyhound 
lines is 17 miles, whereas over the proposed route it is 15 miles. The distance 
from Yadkinville to Mount Airy over the proposed line is 45 miles, whereas by 
Winston-Salem it is 66 miles. Likewise it is nearer from Elkin to Mocksville 
to Salisbury over the proposed route. Also the distance from Salisbury to 
Mocksville on proposed route is 22 miles, whereas from Salisbury to Mocks- 
ville through Satesville is 51 miles. The distance, however, from Mount Airy 
to Salisbury on the proposed route is 86 miles, whereas by the present route 
through Winston-Salem and Lexington it is only 77 miles, which is significant, 
when considering the question of diversion. 

It is the contention of the applicant that while the towns along the proposed 
route between Elkin and Salisbury, except Cooleemee, are well served by the 
Atlantic Greyhound for traveling east and west; that there is a demand for 
service between the towns on the proposed route that does not require a 
circuitous journey over much longer distances, and that the public on account 
of the greater distances by the present service between the towns on the pro- 
posed line seldom use the existing service but arrange to travel by private 
conveyance. 

Many witnesses were offered by the applicant, whose full testimony is con- 
tained in the record, in support of the applicant's contention that the proposed 
service is badly needed. The testimony emphasized the fact that Mount Airy 
and Elkin are towns of several thousand population each; that there is at 
present no transportation facilities between said towns; that about one-half 
way between Mount Airy, and Elkin, is Dobson, the county seat of Surry 
County, and that, naturally, there is and will continue to be considerable travel 
from both Mount Airy and Elkin to the county seat. It was also shown that 
just across the river from Elkin on the proposed route is Jonesville, and then 
going in the direction of Salisbury there are Boonville, Yadkinville, Mocks- 
ville and Cooleemee, and that Yadkinville and Mocksville, like Dobson and 
Salisbury, are county seats. Cooleemee, the testimony shows, is a town of some 
2,500 people and that there would be, if service is provided, considerable travel 
between it and Salisbury and between it and Mocksville and points beyond 
both of said places. 



274 1ST. C. Utilities Commission 

Testimony was also offered by the applicant tending to show that between 
said towns and adjacent to the proposed route there are rather thickly popu- 
lated rural communities and that the entire territory to be traversed is pro- 
gressive and growing rapidly and that the proposed service would accelerate 
this development. 

The protestants on the other hand contended, and offered testimony tending 
to show, that the proposed service was unnecessary. The Atlantic Greyhound 
Corporation offered to put on service from Mount Airy to Elkin, if it should 
be found that said service is necessary, and the Carolina Coach Company 
offered to provide service from Salisbury to Mocksville via Cooleemee, if it 
were found that said service is necessary, but both of said protestants, how- 
ever, Qualified their offers with the statement that neither of them believed 
that said service is necessary. 

It was also contended by the protestants that the proposed service, if estab- 
lished, would divert traffic from their respective lines and thereby lessen their 
income in an appreciable amount and that, therefore, said service should not 
be authorized and that the public should be required to use the present 
circuitous service in order that the income of the present operators should not 
be depleted. 

It was further contended by the protestants that the proposed operation 
would not be economically feasible, unless there was diverted to it from the 
present lines a considerable amount of long distance business from points 
beyond both Mount Airy and Salisbury, which is now routed over the present 
lines. 

The protestant, Queen City Coach Co., contended and offered testimony 
tending to show that the proposed line by its connection at Elkin with the 
Atlantic Greyhound line would divert business which it now has to points in 
northwestern North Carolina, such as Boone and beyond into Tennessee. 

The Carolina Coach Co. was apprehensive that many passengers would 
travel from Salisbury to Mocksville, and then by the Greyhound to distant 
points, instead of using the service of the Carolina Coach Co. to Lexington and 
to Greensboro. 

It appeared from all of the testimony, as to diversion of traffic, that the 
Atlantic Greyhound would be the recipient of most of the business diverted at 
the junction points, except Mount Airy. 

The Atlantic Greyhound Corporation further contended that the establish- 
ment of direct service from Mount Airy to Salisbury would divert traffic from 
its line and that of the Carolina Coach Co., which now goes through Winston- 
Salem and Lexington. 

Upon a consideration of the entire record and the contentions made by the 
able counsel in their arguments before the Commission, the Commission is of 
the opinion, and so finds, that convenience and necessity for the proposed line 
has been shown. It is not believed that the traffic over the proposed line will 
require a multiplicity of schedules, but it is of the opinion that there will be 
sufficient traffic to support the schedules which the applicant proposes to oper- 
ate. It is recognized that the establishment of the line in question will divert 
some business from the present operators, but it is not believed that the 
diversion will be of such magnitude as to seriously deplete the revenue of the 
present operators. In fact, from the testimony it appears that the proposed 
line will give to the Atlantic Greyhound Corporation more revenue than it 



Decisions and Adjustments of Complaints 275 

will take from it and that it will create a sufficient amount of new business for 
both the Carolina Coach Company and the Queen City Coach Co. to offset any 
diversion from either of said lines. 

Wherefore, it is Ordered, That upon a full compliance with the rules and 
regulations of this Commission, that a franchise certificate be issued to E. 0. 
Woodie, d/b/a Salisbury-Mount Airy Coach Co. to operate as motor vehicle 
carrier of passengers, mail and light express from Salisbury to Mount Airy 
over Highway 601 from Salisbury to Boonville via Mocksville and Yadkin- 
ville; thence over Highway 67 from Boonville to Elkin; thence over Highway 
268 from Elkin back to Highway 601; thence to Mount Airy via Dobson and 
White Plains, and return. 

This the 16th day of December, 1939. 

(Signed) Stanley Winborne, 

Utilities Commissioner. 

Docket No. 1524. 

Woodie Transportation Company. Purchase of Certificate No. 378 and Assets 
by Atlantic Greyhound Corporation. Docket No. 1459. (See Atlantic Greyhound 
Corporation. Docket No. 1459.) 

Application of Yount Transfer for Franchise Certificate to operate from 
North Wilkesboro to Elkin, Winston-Salem and High Point. Docket No. 1788. 
(See C & S Motor Express Order, Docket No. 316.) 

Asheville-Elk Mountain and Asheville-Leicester Bus Company (C. P. Flem- 
ing). Application for authority to operate as motor vehicle carrier from Pack 
Square, Asheville, over various streets, and on to Elk Mountain, returning via 
same route to Pack Square. Also from Pack Square over various streets on to 
Leicester, returning over same route. Dismissed for want of prosecution. 
Docket No. 1269. 

Atlantic Greyhound Corporation to the Commission. Application for fran- 
chise certificate to operate as a motor vehicle carrier from Bus Terminal in 
Brevard to North Carolina-South Carolina State Line. Granted. Docket 
No. 1514. 

Atlantic Greyhound Corporation to the Commission. Application for 
authority to sell or transfer all of its rights, title and interest under operation 
between Wilson, N. C, and Greenville, N. C, to Carolina Coach Company. 
Granted. Docket No. 1582. 

Atlantic Greyhound Corporation to the Commission. Application for ap- 
proval of sales contract for the purchase of thirty motor coaches. Approved. 
Docket No. 1757. 

Atlantic Greyhound Corporation to the Commission. Prospectus for sales 
development. Dismissed. Docket No. 1824. 

Brooks Transportation Company, Inc., to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Virginia-North 
Carolina State Line, via Reidsville and Wentworth, to Winston-Salem. 
Granted. Docket No. 1556. 

Caldwell Transportation Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Lenoir to Gamewell. 
Dismissed with privilege of re-opening. Docket No. 1590. 



276 1ST, C. Utilities Commission 

Capital Coast Express. Fine by the Commission for failure to file annual 
report. Withdrawn. Docket No. 1725. 

Carolina Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Wilson, via Stantonsburg, 
to Wilson. Withdrawn. Due to agreement with Seashore Transportation Com- 
pany, application is withdrawn. Docket No. 1432. 

Carolina Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Durham via NC No. 91 
to Intersection of US No. 15-A. Granted. Docket No. 1437. 

Carolina Coach Company to the Commission. Application for authority to 
continue use of ticket-selling agencies at State Drug Store, opposite State 
College, and at Transportation Desk at Sir Walter Hotel. Granted. Docket 
No. 1609. 

Carolina Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from New Bern to Rocky Mount, 
serving Calico, Greenville, Falkland and Pinetops; and from Rocky Mount to 
Norlina, via Littleton. Due to stipulations with Seashore Transportation 
Company, application is withdrawn. Docket No. 1747. 

Carolina Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Wilson to Norlina, serving 
Nashville, Castalia, Centreville, Inez, Creek, Liberia and Warrenton. Due to 
stipulations with Seashore Transportation Company, application is withdrawn. 
Docket No. 1748. 

Carolina Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Lillington to Fayetteville, 
via Manchester. Withdrawn. Docket No. 1749. 

Carolina Coach Company. Complaint in re School Commutation Tickets. 
Adjusted. Docket No. 1720%. 

Central Coach Lines, Inc., to the Commission. Application for authority to 
sell portion of operating rights South of Dunn to Queen City Coach Company, 
and that portion North of Dunn to Carolina Coach Company. Approved. 
Docket No. 1801. 

Chapel Hill and Durham Freight Line to the Commission. Application for 
authority to transfer or sell to Helms Motor Express. Granted. Docket No. 
1519. 

Citizens between Cranberry and Spruce Pine to the Commission. Petition 
for authority for mail contractor of mail service between Cranberry and 
Spruce Pine to carry passengers in mail car. Dismissed. Docket No. 1596. 

City Rapid Transit, Inc., to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Fayetteville to Massey 
Hill-Cumberland-Hope Mills, and return. Dismissed. Docket No. 1391. 

Zollie A. Collins Truck Line to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier to haul brick from Hymans 
to Wilson; Hymans to Beaufort; Hymans to Jacksonville; Hymans to 
Oriental; Hymans to Williamston; Hymans to Columbia; Snow Hill to Farm- 
ville; Kinston to Mount Olive; Kinston to Jacskonville; Jacksonville to 
Swansboro. Fertilizer between Wilmington and Kinston; Tobacco between 



Decisions and Adjustments of Complaints 277 

Kinston and Wilson; Kinston and Greenville; Kinston and Farmville; Kin- 
ston and Goldsboro; Kinston and Durham; Kinston and Wallace. Granted 
temporarily. Docket No. 2077. 

Colonial Motor Freight Line (R. L. Honbarrier) to the Commission. Appli- 
cation for franchise certificate to operate as motor vehicle carrier from High 
Point to New Bern; High Point to Raleigh; Washington to Williamston. 
High Point to Rockingham, Wilmington and return to Julian and High Point. 
Also application for sale of franchise certificate No. 449, Parker and Stout 
Transfer Company (George E. Parker) to Colonial Motor Freight Line. 
Granted. Docket No. 1504. 

Crowder Transport Company, Inc., to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Raleigh to Wil- 
mington. Dismissed for want of prosecution. Docket No. 1146. 

Edmonds Brothers to the Commission. Application for franchise certificate 
to operate as motor vehicle carrier from Asheville to Brevard. Withdrawn. 
Docket No. 1551. 

J. Herman Fulk to the Commission. Application for franchise certificate to 
operate as motor vehicle carrier from Bus stop on South side of Washington 
Street at intersection North Main, thence on various streets in High Point, 
on to Thomasville, on to Fisher Ferry, out to City Limits, and return. Dis- 
missed. Docket No. 1484. 

J. Quince Gilkey to the Commission. Application for franchise certificate to 
operate as motor vehicle carrier from Marion to Newland and Blowing Rock. 
Withdrawn. Docket No. 1445. 

Grey Rabbit Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Lansing to Warrensville, 
Jefferson, West Jefferson, Taylorsville, Conover, and Hickory. Withdrawn. 
Docket No. 1570. 

Habit Brothers Freight Line to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Edenton to Williamston, 
Plymouth, Roper, Creswell and Columbia. Petitioner re-organized, incor- 
porated and sold to Norfolk Southern Bus Corporation. Dismissed. Docket 
No. 1422. 

Holton Bus Line to the Commission. Application for franchise certificate to 
operate as motor vehicle carrier from Oriental to Merritt, Stonewall, Bayboro, 
Alliance, Grantsboro, Reelsboro, Bridgeton, New Bern. Withdrawn. Docket 
No. 886. 

Inter-Carolinas Motor Bus Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Gastonia to 
N. C.-S. C. State Line. Granted. Docket No. 1266. 

Lenoir Motor Coach Company (H. D. McLean) to the Commission. Applica- 
tion for franchise certificate to operate buses in the City of Lenoir. Applica- 
tion amended by extending from limits of Lenoir to Collettsville. Granted. 
Docket No. 1687. 

M. & M. Motor Express (B. F. Jones) to the Commission. Application for 
tentative approval of the transfer of intrastate rights to A. A. Cashion and 
Sons. Approved. Docket No. 1784. 



278 ST. C. Utilities Commission 

Motor Transit Company (R. S. & M. B. Koonce) vs. Somers Trucking Com- 
pany (Paul B. Somers). Complaint of operation as common carrier without 
authority, cutting rates and operating in competition with complainant. Vol- 
untary non-suit requested by complainant. Granted. Docket No. 1108. 

Newton-Conover Bus Line to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Newton to Conover. Dis- 
missed. Docket No. 1598. 

Pan-American Trailways, Inc., to the Commission. Application for authority 
to operate, under lease, interstate rights and franchise of Pan-American Bus 
Lines. Granted. Docket No. 2046. 

Patterson Transfer Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Rockingham to Charlotte, 
without pick-up or delivery between these points. Withdrawn. Docket No. 
2024. 

Queen City Coach Company to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Marion to Blowing Rock, 
via Marion and Junction US No. 221 and NC No. 194. Granted. Docket No. 
1009. 

Queen City Coach Company to the Commission. Revision of tariffs. Approved. 
Docket No. 1574. 

Raleigh-Danville Motor Express to the Commission. Application for author- 
ity for sale and transfer of rights as Motor Carrier to R. S. & M. B. Koonce 
d/b/a Motor Transit Company. Docket No. 1970. 

Roadway Express, Inc., to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier from Brevard to Hendersonville, 
Tryon, Rutherfordton, Shelby, Salisbury, Mocksville, Winston-Salem, Sum- 
merfield, Reidsville, Roxboro and Durham. Dismissed. Docket No. 1947. 

S. & E. Transfer Company (Bloom Calloway) and Lowther Trucking Com- 
pany (J. Wesley Lowther) to the Commission. Application for authority for 
sale or transfer of all rights, title and interest of Bloom Calloway d/b/a 
S. & E. Transfer Company under Certificate No. 481 to J. Wesley Lowther 
d/b/a Lowther Trucking Company under Certificate No. 480. Granted. 
Docket No. 1987. 

Seashore Transportation Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Kinston to New 
Bern via Dover and Cove City. Granted. Docket No. 1134. 

Seashore Transportation Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier to operate from Vanee- 
boro to Goldsboro via Greenville and Ayden. On account of stipulation with 
Carolina Coach Co. application is withdrawn. Docket No. 1135. 

Seashore Transportation Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Rocky Mount to 
Norlina. On account of stipulations with Carolina Coach Company, application 
withdrawn. Docket No. 1265. 

Seashore Transportation Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Wilson to Norlina, 



Decisions and Adjustments of Complaints 279 

via Nashville and Castalia. Due to stipulations with Carolina Coach Company 
application is withdrawn. Docket No. 1528. 

Seashore Transportation Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Fremont to 
Rocky Mount via Stantonsburg and Wilson. Due to stipulations with Carolina 
Coach Company, application is withdrawn. Docket No. 1533. 

Seashore Transportation Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Greenville to Rocky 
Mount. Due to stipulations with Carolina Coach Company, application is with- 
drawn. Docket No. 1760. 

Smith's Transfer Company of Asheville and W. R. Candler Transfer Com- 
pany of Asheville. Rate violations. Adjusted. Docket No. 1617. 

Smoky Mountain Tours Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Gatlinburg, Tenn., 
through the Park to Number 19. Granted. Docket No. 1474. 

Smoky Mountain Stages, Inc., to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Highlands to N. C.-S. C. 
State Line. Granted. Docket No. 1660. 

Southeastern Motor Lines, Inc., to the Commission. Application for transfer 
of Certificates Nos. 334 and 453 — Smith Transfer Company, Inc., and Spencer 
Miller — and certificate to operate as motor vehicle carrier from Boone to 
N. C.-Tenn. State Line, via Zionville, Lansing, West Jefferson, Warrensville, 
Elk Park, Banners Elk, Blowing Rock; then from West Jefferson to Winston- 
Salem via Sparta and Doughton with closed doors for intrastate shipments 
between Winston-Salem and Doughton, and from Winston-Salem to North 
Wilkesboro. Granted. Docket No. 1761. 

T. & P. Bus Line to the Commission. Application for franchise certificate to 
operate as motor vehicle carrier from Mountain Park to Elkin and Chatham 
Furniture and Elkin Furniture companies. Withdrawn. Docket No. 1600. 

Washington-Oriental Bus Line to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Washington to 
Plymouth. Dismissed subject to motion to re-open. Docket No. 1741. 

W. P. White and Brother to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Concord to Midland, 
Stanfield, Locust, Kannapolis, and return to Concord. Granted. Docket No. 
1525. 

E. O. Woodie Bus Line to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier from West Jefferson to Charlotte, via 
Jefferson, North Wilkesboro, Glendale Springs, Wilbar and Millers Creek, 
Conover, Taylorsville and Newton. Withdrawn. Docket No. 1571. 



280 ST. C. Utilities Commission 

Railroads 

INTRASTATE RATES, FARES, RATINGS, RULES 
AND REGULATIONS 

(Reductions Excluded) 

Catalogs, Magazines, etc.: Application by E. H. Dulaney, Agent, Southern 
Classification Committee, on behalf of North Carolina carriers to increase 
unloading charge at passenger terminals when for distribution by United 
States Mail. Approved. Docket 1436. 

Cement: Application by F. D. Miller, Agent, Southern Freight Tariff Bureau 
to transfer carload rates from Freight Tariff N.C.U.C. No. 7 to N.C.U.C. No. 42, 
resulting in slight changes by regrouping of origin points. Approved. Docket 
1668. 

Coconuts, carload: Application by F. D. Miller, Agent, Southern Freight 
Tariff Bureau, for establishment of rates in Miller's Tropical Fruit Tariff 
412-E. Approved. Docket 1618. 

Classification Ratings: Application by E. H. Dulaney, Agent, Southern Classi- 
fication Committee, on behalf of North Carolina Lines to revise the ratings on 
various articles resulting in both increases and reductions. Approved. Docket 
1231. 

Cotton, transit privileges: Application by Norfolk Southern Railroad Com- 
pany to cancel privileges at Dunn, on obsolete theory. Approved. Docket 116. 

Cottonseed: Application by the Atlantic Coast Line Railroad Company for 
authority to cancel rates from and to various points on the obsolete theory, 
resulting in increases in event of movement. Approved. Docket 116. 

Cowpeas: Application by E. H. Dulaney, Agent, Southern Classification 
Committee on behalf of North Carolina Lines to advance rating. Approved. 
Docket 898. 

Demurrage: Application by Agent B. T. Jones, on behalf of North Carolina 
Railroads participating in Demurrage Tariff N.C.U.C. No. 3, to revise demur- 
rage rules with respect to bunching of cars resulting from floods, earthquakes, 
hurricanes, or strikes, or similar conditions. Approved. Docket 149. 

Demurrage: Application by B. T. Jones, Agent for North Carolina Lines 
participating in demurrage and storage tariff to revise rules and regulations 
governing demurrage. Approved. Docket 149. 

Drums, viz.; used, empty, iron or steel: Application by F. D. Miller, Agent, 
Southern Freight Tariff Bureau, for authority to cancel rates from Greensboro 
to Pinehurst, Randleman and Southern Pines, on obsolete theory. Approved. 
Docket 116. 

Fertilizer and Fertilizer Materials — Terminal Allowances: Application by 
the Aberdeen and Rockfish Railroad Company to cancel allowances to ship- 
pers. Approved subject to justification upon complaint. Docket 923. 

Forest Products, transit arrangements on flooring: Application by J. G. 
Kerr, Chairman, Southern Freight Association, for authority to revise. Ap- 
proved. Docket No. 1554. 



Decisions and Adjustments of Complaints 281 

Furniture: Application by J. G. Kerr, Chairman, Southern Freight Associa- 
tion, to cancel mileage scale of rates on furniture and furniture parts, carload. 
Authority granted with reservation. Docket 1603. 

Gasoline: Application by Aberdeen and Rockfish Railroad Company to 
increase carload rate on gasoline from River Terminal to Sanford. Approved. 
Docket 446. 

Grain, transit: Application by Southern Railway Company to cancel transit 
arrangements applicable at Charlotte from Grain Transit Tariff No. 1. 
Approved. Docket 1478. 

Grain, transit: Application by Southern Railway Company to cancel transit 
privileges at Greensboro from its Carolina Grain Transit Tariff No. 5. 
Approved. Docket 1478. 

Grouping: Proposal by F. D. Miller, Agent, Southern Freight Tariff Bureau to 
regroup certain points in Cabarrus and Iredell counties, resulting in both 
increases and reductions. Approved. Docket 455. 

Lard and Lard Compounds, or substitutes and cooking oils in quantity ship- 
ments of 6,000 pounds, amendment of description: Application by F. D. Miller, 
Agent, Southern Freight Tariff Bureau. Approved. Docket 1659. 

Linseed Oil, cake or meal: Application by E. H. Dulaney, Agent, Southern 
Classification Committee, on behalf of North Carolina Lines, to increase rating. 
Approved. Docket 898. 

Loading and unloading; of carload freight by carriers: Application by 
J. G. Kerr, Chairman, Southern Freight Association, on behalf of North Caro- 
lina Lines to increase charges for that service when performed by carriers. 
Approved. Docket 1436. 

Lumber and Related Articles: Interlocutory petition by J. G. Kerr, Chair- 
man, Southern Freight Association, for vacation of outstanding orders. Ap- 
proved without final approval of proposed rates. Further comment herein 
under pending cases. Dockets R-1692 and R-1822. 

Potatoes, sweet and white: Application by F. D. Miller, Agent, Southern 
Freight Tariff Bureau on behalf of North Carolina Lines to increase rates 
from Morehead City and Wilmington to interior points. Approved. Docket 
652. 

Soapstone: Application by Norfolk Southern Railroad Company to revise 
rates resulting in some increases from Hemp and Glendon, N. C, to various 
destinations. Approved. Docket 513. 

Stopping in Transit; for completion of loading or partly unloading: Appli- 
cation by F. D. Miller, Agent, Southern Freight Tariff Bureau, to publish rules 
and regulations requiring shippers' certificate. Approved. Docket 137. 

Switching : Application by J. G. Kerr, Chairman, Southern Freight Associa- 
tion, to restrict intra-plant, intra-terminal and inter-terminal switching of 
cars to eliminate such service on cars moving under order bills of lading. 
Approved. Docket 1301. 

Tile, promenade or quarry: Application by F. D. Miller, Agent, Southern 
Freight Tariff Bureau, to provide additional packing requirements of this 
commodity. Granted. Docket 1365. 



282 Jjf. C. Utilities Commission 

Tobacco, carload: Proposal by F. D. Miller, Agent, Southern Freight Tariff 
Bureau, to provide alternative application of class and commodity rates on 
manufactured tobacco, carload. Approved. Docket 1813. 

Vegetables; namely, beets, cabbage, onions, potatoes, turnips, carload, and 
less than carload : Application by Southern Railway Company for authority to 
cancel rates, page 26, to Wilmington, N. C, on obsolete theory. Approved. 
Docket 116. 

Wood, fire: Application by Louisville and Nashville Railroad Company to 
cancel mileage rates. Approved on condition that scale in N.C.U.C. No. 7, be 
substituted. Docket 116. 

RAIL EXPRESS RATES, RULES, ETC. 

Railway Express Agency, Inc.: Application to revise numerous rates in its 
Tariff, N.C.U.C. No. 155, resulting in both increases and reductions. Approved. 
Docket 1279. 

Railway Express Classification Changes: Application by Railway Express 
Agency, Inc., to revise classification ratings, resulting in both increases and 
reductions. Approved. Docket 720. 

RAIL CLASSIFICATION AND EXCEPTIONS 

Berries, frozen: Application by E. H. Dulaney, Agent Southern Classification 
Committee to increase rates on berries, frozen, Item 725-A, Exceptions to 
Southern Classification. Approved. Docket No. 1513. 

Boxes and Box Parts, fibre or pulpboard: Application by E. H. Dulaney, 
Agent, Southern Classification Committee, to revise ratings. Approved. 
Docket 1513-5. 

Hay, carload: Application by E. H. Dulaney, Agent, Southern Classification 
Committee, for revision of rating, alternation of reduced rate and higher 
minimum weight with higher rate and lower minimum weight. Approved. 
Docket 1513-2. 

Husks (shucks) Corn in barrels, carload, minimum weight 30,000 pounds: 
Application by E. H. Dulaney to revise rating based on truck competition. 
Approved. Docket 1513-3. 

Ratings, general; Proposal as in Supplement No. 16, CFC No. 13, N.C.U.C. 
No. 1 by E. H. Dulaney, Agent, Southern Classification Committee. Approved. 
Docket 1606-16. 

ROAD BUILDING MATERIALS 

Gravel, unwashed clay: Request for cancellation of rate of $1.00 from Car- 
thage to Asheboro, withdrawn on showing of Moore Central Railway of need for 
continuance of rate. Docket 116. 

Sand, carload: Application by Norfolk Southern Railroad Company to 
increase rate from Talbird to Concord, on less than statutory notice of thirty 
days. Denied. Docket 123. 

Sand, carload: Application by Norfolk Southern Railroad Company to 
increase rate from Talbird to Battleground on less than statutory notice. 
Approved subject to conditions. Docket 123. 



Decisions and Adjustments of Complaints 283 

Sand: Application by Seaboard Air Line Railway Company to cancel rate 
from Ashley Heights to various destinations. Approved on obsolete theory. 
Docket 116. 

Sand and Gravel, carload: Application of Atlantic Coast Line Railroad 
Company for authority to cancel rate of 80 cents per ton, in carloads, from 
Gravelton to Fayetteville and intermediate points. Approved with exception 
of to Lumber Bridge. Docket 106. 

Stone, crushed: Application by F. D. Miller, Agent, Southern Freight Tariff 
Bureau, to cancel carload rate of 70 cents per ton from Woodleaf to Cliffs, 
applying in lieu thereof the normal mileage scale resulting in an increase. 
Approved. Docket 116. 

Stone, crushed: Application of Atlantic and Yadkin Railway Company, for 
authority to cancel special rates on stone to be crushed, from Mount Airy to 
Climax and Greensboro. Approved. Docket 116. 

PASSENGER SERVICE, FARES AND CHARGES 

Baggage car charges on totalizer printing equipment, establishment charges 
on: Application by C. L. Hunter, Agent, Official Territory Lines in North 
Carolina. Approved. Docket 1666. 

TRANSPORTATION RATES AND CHARGES 

Furniture, carload: Application by Winston-Salem Southbound Railway 
Company for authority to cancel special rates from Winston and Lexington 
to High Point and Thomasville, allowing normal rates to apply in lieu 
thereof. Approved, subject to investigation upon complaint. Docket No. 1639. 

Sawdust and Shavings: Application by Atlantic Coast Line Railroad to 
cancel carload rates from various stations to Wilmington, applying lumber 
rates in lieu thereof. Approved. Docket No. 1640. 

Switching: Application by Atlantic Coast Line Railroad Company to estab- 
lish a charge of $11.00 per car for switching lumber within the Wilmington 
terminal. Approved. Docket No. 1467. 

Switching: Application by Piedmont and Northern Railway Company for 
authority to establish charges for switching partially loaded cars at private 
or assigned sidings when such cars are to receive a line haul. Approved, sub- 
ject to investigation upon complaint of interested parties. Docket No. 1703. 

CLAIMS 

Aberdeen and Rockfish Railroad Company. Application for authority to 
make refund on shipment of sand from Ashley Heights to Greensboro. 
Approved. Docket 2011. 

Aberdeen and Rockfish Railroad Company. Request for authority to waive 
collection on shipments of sand from Blues Y Siding to Hillsboro. Approved. 
Docket 2069. 

Atlantic Coast Line Railroad Company. Application for authority to make 
refund on shipment of common brick from Goldsboro to Edenton on account of 
Borden Brick and Tile Company. Approved. Docket 1491. 

Atlantic Coast Line Railroad Company. Application for authority to refund 
overcharge and waive collection on shipments of sugar from Wilmington, 



284 JN". C. Utilities Commission 

N. C, destinations on account of H. H. Pike and Company. Approved. Docket 
1700. 

Atlantic Coast Line Railroad Company. Application for authority to make 
refund to Service Oil Company, Inc., on shipment of mixed gasoline and kero- 
sene from Laurinburg to Wilmington. Approved. Docket 1737. 

Atlantic Coast Line Railroad Company. Application for authority to make 
refund to Virginia-Carolina Chemical Company covering seventy-seven cars of 
sulphuric acid from Selma to Wilson. Approved. Docket 1800. 

Carolina and Northwestern Railroad Company. Reparation claim by Sinclair 
Refining Company on shipments of gasoline and kerosene from Wilmington to 
Warrior. Approved. Docket 1469. 

Black Mountain Railway Company. Application for authority to waive col- 
lection of $29.60 on car of scrap mica from Goog Rock to Micaville on account 
of N. C. Feldspar Corporation. Approved. Docket 1685. 

Norfolk Southern Railroad Company. Application for authority to make 
refund on shipment of stone from Rockton to Seaforth on account of Raleigh 
Granite Company. Approved. Docket 1480. 

Norfolk Southern Railroad Company. Application for authority to make 
refund on demurrage cars of sand from Talbird Siding to Badin and Durham 
on account of Aberdeen Sand Company. Approved. Docket 1486. 

Norfolk Southern Railroad Company. Application for authority to make 
reparation on shipments of grain and grain products from Asheboro to N. C. 
points on account of Southern Crown Milling Company, Asheboro. Dismissed 
for want of jurisdiction. Docket 1630. 

Norfolk Southern Railroad Company. Application for authority to waive 
collection of undercharges on shipments of sand and gravel between points in 
N. C. representing increases in N. C. intrastate rates. Approved. Docket 1694. 

Norfolk Southern Railroad Company. Application for authority to waive col- 
lection of demurrage on sand from Talbird Siding on account of Aberdeen 
Sand Company. Approved. Docket 1704. 

Seaboard Air Line Railway. Application for authority to make refund to 
Virginia-Carolina Chemical Corporation of Richmond, Virginia, on shipments 
of super phosphate from Navassa to Gibson. Approved. Docket 2007. 

Southern Railway System and Norfolk Southern Railroad. Application for 
reparation claim on carload of tobacco hogsheads from Winston-Salem to 
Wilson on account of R. G. Reynolds Tobacco Company. Approved. Docket 
1468. 

Southern Railway Company. Application for authority to waive collection of 
undercharge on shipments of logs, bolts, billets and blocks on account of Carr 
Lumber Company. Approved. Docket 1607. 

Southern Railway System. Application for reparation claim covering car of 
lumber from Lumberton to Charlotte. Approved. Docket 1669. 

Southern Railway System. Application for authority to make refund of intra- 
terminal switching rate of shipments of R. G. Reynolds Tobacco Company. 
Approved. Docket 1961. 



Decisions and Adjustments of Complaints 285 

IN THE MATTER OF INCREASES IN FREIGHT RATES ON 
BITUMINOUS COAL LOADINGS 

Order 

It Appearing, That the Interstate Commerce Commission, by its decision 
and order dated November 21, 1938, In the matter of Increases in Freight 
Rates and Charges, 1937, Ex Parte No. 115, 229 I.C.C. 435, found that the 
present interstate rates on Bituminous coal, carloads, not to be unreasonable 
beyond December 31, 1938, with which date they were authorized and originally 
published to expire; 

It Further Appearing, That by my order dated November 22, 1937, author- 
izing similar increases in North Carolina intrastate rates on Bituminous Coal, 
the said increases expire with December 31, 1938; that the rail carriers now 
petition for an indefinite continuation of present intrastate rates; and that 
under Section 16, Chapter 134, of the Public Laws of North Carolina of 1933, 
demand that I inquire into and determine the reasonableness thereof; 

It Further Appearing, That by reason of this statute a hearing will, there- 
fore, be necessary, which cannot be held prior to December 31, 1938, the said 
date on which the present rates expire; 

It is Therefore Ordered, That my order of November 22, 1937, in so far as 
it provides that the expiration date fixed in connection with the increased 
rates on Bituminous Coal shall be December 31, 1938, be, and the same is, 
hereby amended by changing said expiration date to be February 28, 1939, 

It is Further Ordered, That Application of North Carolina rail carriers to 
indefinitely continue the present increased rates on Bituminous Coal, carloads, 
be, and the same is, hereby assigned for hearing in the office of this Commis- 
sion on Tuesday, January 17, 1939, at 10:00 a.m. 

This the 17th day of December, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 191. 

IN THE MATTER OF INCREASES IN FREIGHT RATES 
ON BITUMINOUS COAL, CARLOADS 

Order 

By Petition dated December 14, 1938, all common carriers by railroad operat- 
ing in this State applied for authority to continue, as a permanent part of 
the rate structure, increases in rates on bituminous coal, carloads, between 
points in North Carolina, which by this Commission's order dated November 
22, 1937, were temporarily authorized to expire December 31, 1938, and by 
further order dated December 17, 1938, the expiration date of said increases was 
changed to February 28, 1939. 

The following permanent increases are proposed: 

Rate Increase 

75 cents or less 3 cents 

76 cents to 100 cents 5 cents 
Over 100 cents 10 cents 



286 N". C. Utilities Commission 

No one appeared at the hearing in Raleigh on February 7, in opposition to 
the petition. Petitioners' witness stated that investigation developed that 
there is no movement of bituminous coal, carloads, between points in North 
Carolina, and by Exhibit No. 1, showed that the present rates continued indefi- 
nitely would in every instance be lower than interstate rates, the latter having 
been found by the Interstate Commerce Commission in Ex Parte 115, 229 
ICC 435, to be just and reasonable beyond December 31, 1938. 

As the financial conditions of rail carriers operating within the state have 
not materially changed since the original hearing in 1937, the increases 
sought will be authorized. Circular No. 230 will be amended to reflect these 
increases. 

It is Therefore Ordered, That petition of rail carriers for authority to 
increase rates on bituminous coal, carloads, by amounts stated in the foregoing 
opinion be, and the same is hereby granted. 

This 10th day of February, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 191. 

APPLICATIONS Nos. 169 AND 171, OF SOUTHERN FREIGHT ASSOCIA- 
TION BY ITS CHAIRMAN J. G. KERR, IN BEHALF OF NORTH CARO- 
LINA RAIL CARRIERS TO VACATE OUTSTANDING ORDERS COVER- 
ING THE RATES ON LUMBER AND RELATED ARTICLES BETWEEN 
POINTS IN THE STATE OF NORTH CAROLINA. DOCKETS Nos. 1692 
AND 1822. 

Order 
By Applications numbered 169, September 7, 1939, and number 171, dated 
February 2, 1940, J. G. Kerr, for and in behalf of rail carriers operating intra- 
state in North Carolina, seeks vacation of certain orders hereinafter cited, for 
the purpose of revising rates on domestic lumber, related articles, and foreign 
woods. Chapter 365, Public Laws of 1939, enacted since date of the orders 
herein sought to be vacated prohibits the carriers from making effective 
any increase in rates on less than thirty days' notice to the Commissioner 
and the public, without first showing cause to and receiving special authority 
from the Commissioner. Further, the statute confers discretionary authority 
upon the Commissioner to suspend and investigate proposed increases, either 
on his own motion, or upon protest of interested parties. 

Upon considering the grounds of these petitions filed by applicant under 
Rule 9%, paragraphs (g) and (h) of the Rules of Practice, to vacate the 
following orders and circulars: Order dated March 29, 1927, as amended 
August 26, 1932, entered in Equitable Freight Adjustment Bureau et al., v. 
Atlantic Coast Line R. R., et al., rates on fruit or berry crates and vegetable 
baskets or hampers; Circular 314, August 1, 1929, Maximum Rates on Lumber, 
Supplement 2, August 17, 1938, and Circular 320 of August 1, 1929, as amended 
by Supplement 1, August 17, 1938. Also, order dated April 22, 1924, relating to 
applicability of intrastate rates to traffic moving through the Port of Wil- 
mington, and; 



Decisions and Adjustments of Complaints 287 

It Appeasing, That the rights and interests of the public will not be injuri- 
ously affected by the granting of applicant's petitions, and that thereby any 
change in the rates, ratings, charges, rules, regulations, or practices hereafter 
proposed, is not approved; 

It Further Appearing, That the rates, ratings, charges, rules, regulations 
or practices maintained by applicants under the above orders, and circulars 
have now become recognized parts of the existing rate structure and that any 
change hereafter proposed therein by applicants can be given adequate con- 
sideration by the Commissioner, or the Commission, upon protest of inter- 
ested persons against tariff schedules seeking to effect such change, followed 
in appropriate instances by suspension and investigation; 

It is Ordered, That outstanding orders and circulars listed above in so far as 
they require the continued observance and maintenance of the rates, ratings, 
charges, rules, regulations, or practices prescribed in said orders or circulars 
be, and they are hereby, vacated and set aside. 

This 15th day of March, 1940. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Dockets Nos. 1692 and 1822. 

INVESTIGATION AND SUSPENSION DOCKET No. R-1692, LUMBER AND 
RELATED ARTICLES. INTRASTATE WITHIN NORTH CAROLINA 

Order 
It Appearing, That there have been filed with the Utilities Commissioner, 
tariffs containing schedules stating new individual and joint rates, charges, 
regulations, and practices to become effective on the 17th day of June, 1940, 
and proximal, and that said schedules make certain increases in the rates for 
the intrastate transportation of lumber and related articles, carloads, and the 
rights and interests of the public appearing to be injuriously affected thereby, 
and it being the opinion of the Commissioner that the effective date of said 
schedules contained in said tariffs should be postponed pending hearing and 
decision thereon; 

It is Ordered, That the Commissioner upon complaint, without formal plead- 
ing, enter upon a hearing concerning the lawfulness of the rates, charges, regu- 
lations and practices stated in the said schedules, contained in said tariffs, 
viz.: 

F. D. Miller, Agent 

Tariff N.C.U.C. No. 70 

Supplement No. 5 to N.C.U.C. No. 52 

And all other tariffs and supplements, whether agency or individual, not 
designated in this order in so far as they cancel, change or otherwise affect 
the intrastate carload rates on lumber and related articles; 

It is Further Ordered, That the operation of the said schedules contained 
in said tariffs be suspended, and that the use of the rates, charges, regulations 
and practices therein stated be deferred upon intrastate traffic until the 10th 
day of September, 1940, unless otherwise ordered by the Commissioner and no 
change shall be made in such rates, charges, regulations and practices during 



288 ~N. C. Utilities Commission 

the said period of suspension unless authorized by special permission of the 
Commissioner. 

It is Further Ordered, That the rates and charges and the regulations and 
practices thereby sought to be altered on the 17th day of June, 1940, and 
proximal, shall not be changed by any subsequent tariff or schedule, until 
this investigation and suspension proceeding has been disposed of or until 
the period of suspension and any extension thereof has expired, unless author- 
ized by special permission of the Commissioner. 

It is Further Ordered, That a copy of this order be filed with said schedules 
in the office of the Commissioner, and that copies hereof be forthwith served 
upon the carriers parties to said schedules and upon carriers' agents, and that 
said carriers parties to said schedule be, and they are hereby, made respond- 
ents to this proceeding. 

And it is Further Ordered, That this proceeding be, and the same is hereby 
assigned for hearing on the 14th day of August, 1940, at 10:00 o'clock a.m., 
before the Utilities Commissioner at his office in Raleigh. 

This the 15th day of June, 1940. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1692. 

INVESTIGATION AND SUSPENSION DOCKET No. R-1822. FOREIGN 
LUMBER OR LOGS, AND VENEER AND BUILT-UP WOODS, MADE OF 
FOREIGN WOODS, INTRASTATE WITHIN NORTH CAROLINA. 

Order 
It Appearing, That there have been filed with the Utilities Commissioner, 
tariffs containing schedules stating new individual and joint rates, charges, 
regulations and practices to become effective on the 12th day of June, 1940, and 
later, and that said schedules make certain increases in the rates for the intra- 
state transportation of foreign lumber or logs, veneer and built-up woods, made 
of foreign woods, carloads, the rights and interests of the public appearing to 
be injuriously affected thereby, and it being the opinion of the Commissioner 
that the effective date of said schedules contained in said tariffs should be 
postponed pending hearing and decision thereon; 

It is Ordered, That the Commissioner upon complaint, without formal plead- 
ing, enter upon a hearing concerning the lawfulness of the rates, charges, 
regulations and practices stated in the said schedules, contained in said tariffs, 
viz.: 

Supplement No. 21 to Agent F. D. Miller's Tariff, N.C.U.C. 50, page 7, 
Items 2635, 2636, 2637; page 8, Items 5024, 5024.1, 5024.2; page 11, Items 
11073, 11073.1, 11073.2, 11073.3, 11073.4, 11073.5, 11073.6, 11073.7, 11073.8, 
11073.9; page 12, Items 16400 through 17409,inclusive; Supplement No. 14, 
page 2, Item 2635-A; page 3, Item 5024-A. Foregoing items to extent reis- 
sued in Supplement No. 15. 

Supplements 4-B and 5 to Agent F. D. Miller's Tariff N.C.U.C. 52. 
Supplement No. 45 to N.C.U.C. No. 6, page 2, Item 31, issued by Sea- 
board Air Line Railway Company (L. R. Powell, Jr., and Henry W. Ander- 
son, Receivers). 



Decisions and Adjustments of Complaints 289 

And all other tariffs and supplements not designated in this order in so far as 
they cancel, change or otherwise affect the intrastate carload rates on foreign 
lumber or logs and veneer or built-up woods, made of foreign woods: 

It is Further Ordered, That the operation of the said schedules contained in 
said tariffs be suspended, and that the use of the rates, charges, regulations and 
practices therein stated be deferred upon intrastate traffic until the 10th day of 
September, 1940, unless otherwise ordered by the Commissioner and no 
change shall be made in such rates, charges, regulations and practices during 
the said period of suspension unless authorized by special permission of the 
Commissioner. 

It is Further Ordered, That the rates and charges and the regulations and 
practices thereby sought to be altered on the 12th day of June, 1940, and later, 
shall not be changed by any subsequent tariff or schedule, until this investiga- 
tion and suspension proceeding has been disposed of or until the period of sus- 
pension and any extension thereof has expired, unless authorized by special 
permission of the Commissioner. 

It is Further Ordered, That a copy of this order be filed with said schedules 
in the office of the Commissioner, and that copies hereof be forthwith served 
upon the carriers parties to said schedules and upon carriers' agents, and that 
said carriers parties to said schedules be, and they are hereby, made respond- 
ents to this proceeding. 

And it is Further Ordered, That this proceeding be, and the same is hereby 
assigned for hearing on the 13th day of August, 1940, at 10 a.m., before 
the Utilities Commissioner at his office in Raleigh. 

This 10th day of June, 1940. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1822. 

IN THE MATTER OF CANCELLATION OF COLUMN 42 ON PAPER AND 
PAPER ARTICLES, L.C.L. 

Order of Suspension 

It Appearing That there has been filed with the Utilities Commissioner 
Supplement No. 49 to Agent F. D. Miller's Freight Tariff 715-A (North Caro- 
lina), N.C.U.C. No. 5, stating new individual and joint regulations and prac- 
tices affecting rates and charges on paperboard and pulpboard, viz.: binders' 
board, bristol board, card board, tag board, and tar board, L.C.L., as described 
in Item 400-A applicable from Charlotte and Greensboro, and on printing 
paper, wrapping paper, paper bags, blotting paper, newsprint paper, sealing 
tape, gummed paper or gummed paper other than cloth lined, toilet paper, 
paper towels or paper napkins, L.C.L,, as described in Item 410-A, applicable 
from Asheville, Canton, Charlotte, Durham, Gastonia, Greensboro, High Point, 
Raleigh, Roanoke Rapids, and Winston-Salem, to become effective June 15, 
1939; and 

It Further Appearing, That said schedule makes certain increases in rates 
for the transportation of paper and paper articles, less than carload, in intra- 
state commerce, and the rights and interests of the public appearing to be 
injuriously affected thereby, and it being the opinion of the Commissioner that 

19 



290 



N". C. Utilities Commission 



the effective date of the said schedule should be postponed pending said hear- 
ing and decision thereon; 

It is Ordered, That the Commissioner upon complaint, without formal plead- 
ing, enter upon a hearing concerning the lawfulness of the rates, charges, 
regulations, and practices stated in the aforementioned schedule in so far as it 
cancels, changes, or otherwise affects rates, charges, regulations, and practices 
applicable on paper and paper articles, L.C.L., as described in Items 400-A and 
410-A of Supplement 49 to the tariff referred to in paragraph 1 from the points 
named in said items to points in North Carolina; 

It is Further Ordered, That the operation of Items 400-A and 410-A of 
said schedule be suspended and that the use of the rates, charges, regulations, 
and practices therein stated be deferred upon intrastate traffic until the 10th 
day of December, 1939, unless otherwise ordered by the Commissioner, and no 
change shall be made in such rates, charges, regulations, and practices during 
the said period of suspension, unless authorized by special permission of the 
Commissioner; 

It is Further Ordered, That a copy of this order be filed with said schedule 
in the office of the Commissioner and that copies thereof be forthwith served 
upon F. D. Miller, Agent for carriers participating in said schedule which 
carriers are hereby made respondents to this proceeding; and 

It is Further Ordered, That this proceeding be set for hearing before the 
Utilities Commissioner in his office in Raleigh on Tuesday, August 22, 1939, 
at 10:00 a.m. 



This 12th day of June, 1939. 



By Order of the Commissioner: 
R. O. Self, Chief Clerk. 



(SEAL) 
Dockt No. 



1126. 



IN THE MATTER OF CANCELLATION OF COLUMN 42 ON PAPER 
AND PAPER ARTICLES, L.C.L. 

Order 

It Appearing, That upon further investigation by the rail carriers it has 
been concluded by said carriers to withdraw Item 400-A and 410-A, page 4, 
of Supplement 49 to Agent F. D. Miller's Tariff 715-A, N.C.U.C. No. 5, now 
suspended by our order, dated June 12, 1939, until December 10, 1939, hearing 
on which is set for August 22, 1939, and 

It Further Appearing, That said carriers desire to continue the rates 
presently applicable until further notice. 

It is Ordered, That Southern Freight Tariff Bureau North Carolina Intra- 
state Application No. 201, dated June 29, 1939, file K-00341, petitioning 
for authority to withdraw the suspended items on one day's notice to the 
Commissioner and to the public and to continue the present rates until further 
notice be, and the same is, hereby granted. 



Decisions and Adjustments of Complaints 291 

It is Further Ordered, That this proceeding be, and the same is, hereby 
discontinued. 

This 1st day of July, 1939. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 
(SEAL) 
Docket No. 1126. 

IN THE MATTER OF REVISION OF RAIL RATES ON PAPER AND 
PAPER ARTICLES, CARLOADS AND LESS THAN CARLOADS (S.F.A. 
APPLICATIONS Nos. 159 AND 160). DOCKET No. 1126. 

Order 
Appearances: 

Charles Clark and Carl W. Dilli, Southern Railway Company, Washington, 

D. C, for Applicants. 
0. J. McSwain, Richmond, Va., for Halifax Paper Company, and R. L. 
Flanagan, Richmond, Va., for Manchester Board and Paper Co., Prot- 
estants. 

By Application No. 160, dated August 24, 1938, North Carolina rail carriers 
through J. G. Kerr, Chairman, Southern Freight Association, seek authority to 
cancel all existing carload and less than carload commodity rates (except those 
published to meet motor truck or water competition), basis for rates, and 
Classification Exceptions on paper and paper articles, viz.: Paper, blotting, 
and paper cover; paper, wrapping, N.O.I. B.N., in Southern Classification; 
wrappers, paper bags, paper, N.O.I.B.N., in Southern Classification; 
sealing tape; bags, paper, shopping; paper, printing, other than newsprint; 
pulpboard, N.O.I.B.N., in Southern Classification; boxes, fibreboard, pulp- 
board or strawboard (paper boxes), without wooden frames; between points 
in the State of North Carolina and to apply in lieu thereof four mileage scales 
of rates covering the following descriptions all of which are set forth in 
Exhibit No. 1 appended to the application: 

Description A 

(a) Paper, wrapping, N.O.I. B.N. in Sou. Class'n. (other than vegetable 
parchment), printed or imprinted, or not printed or imprinted, in packages, 
carloads, minimum weight 36,000 lbs. 

(b) Wrappers, paper (other than tissue, vegetable parchment or Govern- 
ment stamp), plain or printed, not corrugated, lithographed, embossed, oiled 
or waxed, in packages or securely fastened on skids or platforms, carloads, 
minimum weight 36,000 lbs. 

(c) Bags, paper, N.O.I. B.N. in Sou. Class'n. printed or not printed, in pack- 
ages, carloads, minimum weight 36,000 lbs. 

(d) Sealing tape, gummed paper (other than cloth lined), protected with 
water-proof wrapping paper, in boxes, bundles, crates or rolls, carloads, mini- 
mum weight 36,000 lbs. 

(e) Bags, paper, shopping, with handles, printed or not printed, in mixed 
carloads with wrapping paper, N.O.I.B.N. in Sou. Class'n. (other than vege- 
table parchment), printed or imprinted, or not printed or imprinted, or 
paper bags, N.O.I.B.N. in Sou. Class'n., printed or not printed (paper shop- 



292 "N. C. Utilities Commission 

ping bags not to exceed 25 per cent of total weight of contents of car), in 
packages, minimum weight 36,000 lbs. 

Description B 

(a) Paper, printing, other than newsprint, not printed or imprinted, in 
bales, bundles (on skids or otherwise), crates or rolls, carloads, minimum 
weight 36,000 lbs. 

(b) Paper, blotting, in packages, carloads, min. weight 36,000 lbs. 

(c) Paper, cover, in packages, C. L., minimum weight 36,000 lbs. 

Description C 

Paper, viz.: 

Pulpboard, N.O.I. B.N. in Sou. Class'n., paper or pulp lined or not lined, 
not coated nor printed (see Note 2) : 

Loose, braced in car, edges protected from chafing, or in packages, corru- 
gated or indented, C.L. min. wt. 24,000 lbs., Rule 34 of Sou. Class'n.; not 
corrugated or indented (see Note 3), C.L. min. wt. 36,000 lbs. 

Note 2 — Will not apply on building, wall or insulating boards. 

Note 3 — When shipment requires a car of greater length than can be fur- 
nished by carrier, two smaller cars may be furnished and revenue assessed 
upon basis of actual weight of the property, but not less than 50,000 lbs., as a 
minimum weight for the combined loading of the two cars furnished. 

Description D 

Boxes, fibreboard, pulpboard or strawboard (paper boxes), without wooden 
frames (see Note 4), viz.: 

Corrugated, K.D. flat or folded flat, in boxes, bundles or crates, carloads, 
min. wt. 24,000 lbs., subject to Rule 34 of Sou. Class'n. 

Other than corrugated, K.D. flat or folded flat (see Note 5), in boxes, bundles 
or crates, carloads, min. wt. 36,000 lbs. 

Note 4 — The necessary equipment or partitions or fillers, fibreboard, pulp- 
board or strawboard, to outfit the boxes, also the necessary number of sealing 
strips to set up and seal boxes, in each carload, may be shipped with the boxes 
at the rate applying on the boxes. 

Note 5 — Bodies and bottoms folded flat, entirely enclosed in set-up tops, 
not exceeding one inch in depth, will be considered as folded flat. 

Note 6 — Silicate of Soda in liquid form, in metal drums, necessary to set up 
and seal the boxes in each carload may be shipped with the boxes at the 
rating applicable on paper boxes. The amount of liquid silicate of soda to be 
shipped in each carload not to exceed 800 pounds. 

On commodities not included in the above descriptions, class rates in con- 
nection with ratings provided in Southern Classification are proposed. 

The proposed rates are generally applicable on interstate traffic between all 
points in southern territory, except that in a few instances, commodity rates 
were continued or established from important points of production to con- 
verting points or to the ports. The same general bases are also in effect on 
intrastate traffic in several other southern states. 

The level of rates proposed, applicants contend, was determined upon only 
after numerous conferences between the carriers and interested shippers 



Decisions and Adjustments of Complaints 293 

located in every section of the South, and it is further contended, has the 
approval of such shippers. 

By Application No. 159, dated August 24, 1938, the same carriers, through 
J. G. Kerr, Chairman, Southern Freight Association, petitioned for authority 
to cancel Item 1243-C, Supplement 14, Note B of Agent E. H. Dulaney's Excep- 
tions No. 17 to Southern Classification, I.C.C. No. 72, as amended, and to provide 
for rates on the aforementioned commodities on bases of the mileage scales 
set forth in Application No. 160. 

The scales of rates proposed in Application No. 160 are based on I.C.C. 
Docket No. 13494 class rates, effective June 10, 1930, increased ten per cent 
April 30, 1938, Increases in Rail Freight Rates and Charges, 1938. Docket No. 
1239, and represent Columns 25G, 27%G, 22MjG, and 30G, covering Descriptions 
A, B, C, and D, respectively. 

In Revision of Class Rates in North Carolina, Docket No. 910, this Commis- 
sion reduced intrastate class rates 7.8 per cent, effective August 15, 1937, which, 
on April 30, 1938, were increased ten per cent: Freight Rates and Charges, 
1938, supra. At the present time the ratings shown in Note B of Exceptions to 
Southern Classification apply in connection with the latter class rates instead 
of I.C.C. Docket 13494 class rates. 

Official territory rates apply from southern points to the Virginia Cities, 
the same having been published to enable southern producers to compete at 
those points with producers in official territory. Carriers in the South pro- 
posed to publish the same rates to points in official territory; however, the 
official territory carriers refused to give their concurrence thereto, but agreed 
to concur in rates from the South to official territory on the paper and paper 
articles in question on basis of 110 per cent of official territory rates. On 
southbound traffic from official territory to the south, the official territory car- 
riers wanted to publish the northbound bases of rates to which the southern 
carriers disagreed. As a result of this disagreement and in order to comply 
with Fourth Section requirements of the Interstate Commerce Commission, 
all southbound rates were cancelled, effective October 3, 1937, leaving class 
ratings in Southern Classification to apply. These cancellations, however, were 
suspended and investigatd by the above Commission. On July 18, 1939, Paper, 
Official-Illinois Territories to the South, I&S Docket 4413 (mimeographed), 
that Commission found and ordered that the southbound rates should be on 
the same level as those applying northbound. The effect of this finding and 
order gave to shippers in official territory rates based on 110 per cent of rates 
within that territory. These rates, applicable to North Carolina, as compared 
with the proposed intrastate rates and with rates based on Docket No. 910 
class rates are shown as follows: 



294 "N. C. Utilities Commission 





110 Per 




Proposed Rates 




110 Per 


Proposed 




Cent of 




Description 




Cent of 


Rates 


Miles 


Official - 








- Official 


Description 




27%J 


A 


B 


D 


25J 


C 




Rates 








Rates 






25G 


27i/ 2 G 


30G 


22%G 


10 


12 


11 


12 


13 


12 


10 


15 


13 


12 


13 


14 


12 


11 


20 


13 


12 


13 


14 


12 


11 


25 


14 


13 


14 


15 


13 


12 


30 


14 


14 


15 


16 


13 


12 


35 


15 


14 


15 


17 


14 


13 


40 


15 


15 


16 


17 


14 


13 


45 


17 


16 


17 


18 


15 


14 


50 


17 


16 


17 


19 


15 


15 


55 


18 


17 


18 


20 


17 


15 


60 


18 


17 


19 


20 


17 


16 


65 


19 


18 


20 


21 


17 


16 


70 


19 


19 


20 


22 


18 


17 


75 


19 


19 


21 


22 


18 


17 


80 


20 


20 


21 


23 


18 


18 


85 


20 


20 


22 


24 


19 


18 


90 


20 


20 


22 


24 


19 


18 


95 


21 


21 


22 


24 


19 


19 


100 


21 


21 


23 


25 


20 


19 


110 


22 


22 


24 


26 


20 


20 


120 


22 


23 


25 


28 


21 , 


20 


130 


23 


23 


25 


29 


21 


21 


140 


23 


24 


26 


29 


22 


22 


150 


24 


25 


28 


30 


22 


22 


160 


24 


26 


29 


31 


23 


23 


170 


25 


26 


29 


32 


23 


24 


180 


25 


28 


30 


32 


23 


24 


190 


26 


28 


31 


33 


24 


25 


200 


26 


29 


31 


34 


24 


25 


210 


28 


29 


32 


34 


25 


25 


220 


28 


30 


32 


35 


25 


26 


230 


29 


30 


33 


35 


26 


26 


240 


29 


31 


33 


36 


26 


28 


260 


30 


32 


34 


37 


28 


29 


280 


31 


33 


35 


39 


28 


30 


300 


32 


34 


37 


41 


30 


30 


320 


33 


35 


39 


42 


30 


31 


340 


34 


36 


40 


43 


31 


32 


360 


34 


37 


41 


44 


31 


33 


380 


35 


39 


42 


45 


32 


34 


400 


36 


40 


43 


47 


33 


35 


420 


37 


40 


44 


48 


34 


36 


440 


37 


41 


45 


48 


34 


36 


460 


39 


42 


46 


50 


35 


37 


480 


40 


43 


46 


51 


36 


39 


500 


41 


43 


47 


52 


37 


39 


520 


41 


44 


48 


53 


37 


40 


540 


43 


45 


50 


54 


39 


41 


560 


43 


46 


51 


55 


40 


41 


580 


44 


46 


51 


56 


40 


42 


600 


45 


47 


52 


57 


41 


43 


620 


46 


48 


53 


58 


42 


43 


Average 


27 


28 


31 


33 


25 


25 



Decisions and Adjustments of Complaints 295 





110 Per 


Based on 910 Scale m 


110 Per 


Based on 




Cent of 




Description 




Cent of 


910 Scale 


Miles 


Official - 








- Official 


Description 




27W 


A 


B 


D 


'25J 


C 




Rates 








Rates 


















25G 


27%G 


80G 




22^0 


10 


12 


10 


11 


12 


12 


9 


15 


13 


11 


12 


12 


12 


10 


20 


13 


12 


12 


13 


12 


11 


25 


14 


12 


13 


14 


13 


11 


30 


14 


13 


14 


15 


13 


11 


35 


15 


13 


14 


16 


14 


12 


40 


15 


14 


15 


16 


14 


13 


45 


17 


15 


16 


17 


15 


13 


50 


17 


15 


16 


18 


15 


14 


55 


18 


16 


17 


18 


17 


14 


60 


18 


16 


17 


19 


17 


15 


65 


19 


17 


18 


20 


17 


15 


70 


19 


17 


19 


20 


18 


16 


75 


19 


18 


19 


21 


18 


16 


80 


20 


18 


20 


22 


18 


17 


85 


20 


19 


20 


22 


19 


17 


90 


20 


19 


20 


22 


19 


17 


95 


21 


19 


21 


22 


19 


17 


100 


21 


20 


21 


23 


20 


18 


110 


22 


20 


22 


24 


20 


18 


120 


22 


21 


23 


25 


21 


19 


130 


23 


22 


23 


25 


21 


20 


140 


23 


22 


24 


26 


22 


20 


150 


24 


23 


25 


28 


22 


21 


160 


24 


24 


26 


29 


23 


22 


170 


25 


24 


26 


30 


23 


22 


180 


25 


25 


28 


30 


23 


22 


190 


26 


25 


28 


31 


24 


23 


200 


26 


26 


29 


31 


24 


23 


210 


28 


26 


29 


32 


25 


24 


220 


28 


28 


30 


32 


25 


24 


230 


29 


28 


31 


33 


26 


25 


240 


29 


28 


31 


33 


26 


25 


260 


30 


29 


32 


35 


28 


26 


280 


31 


30 


33 


36 


28 


28 


300 


32 


31 


34 


37 


30 


28 


320 


33 


32 


35 


39 


30 


29 


340 


34 


33 


36 


40 


31 


30 


360 


34 


34 


37 


41 


31 


31 


380 


35 


35 


39 


42 


32 


32 


400 


36 


36 


40 


43 


33 


32 


420 


37 


37 


41 


44 


34 


33 


440 


37 


37 


42 


45 


34 


.34 


460 


39 


39 


42 


46 


35 


34 


480 


40 


40 


43 


47 


36 


35 


500 


41 


40 


44 


48 


37 


36 


520 


41 


41 


45 


48 


37 


36 


540 


43 


42 


45 


50 


39 


37 


560 


43 


42 


46 


51 


40 


37 


580 


44 


43 


47 


52 


40 


39 


600 


45 


44 


48 


53 


41 


40 


620 


46 


44 


48 


53 


42 


40 


Average 


27 


26 


28 


31 


25 


23 



296 "N. C. Utilities Commission 

It will be observed that the interterritorial rates for Descriptions A, B, 
and D average less than the proposed rates, while rates for Description C have 
the same average. If Descriptions A, B and C were grouped, as they are within 
Official territory and between that territory and the South, the average rate 
proposed for Descriptions A, B and D would be 31 cents, equivalent to Column 
27%G, or four cents higher than interterritorial rates. 

It will be observed, also, that the interterritorial rates for Descriptions B 
and D average less than what Docket 910 rates would produce, although there 
is a higher average under Descriptions A and C. The average of Descriptions 
A, B and D, being equivalent to Column 27%G, is 28 cents or 1 cent higher 
than interterritorial rates. 

By combining all descriptions into one, the interterritorial rates average 26 
cents and the Docket 910 rates average 27 cents. 

Application No. 159 has not been justified. Application No. 160, as amended, 
in so far as it proposes to apply on North Carolina intrastate traffic rates 
based on the mileage scales set forth in Exhibit No. 1, attached thereto and 
made a part thereof, has not been justified. Circular No. 343 will be cancelled 
and applicants authorized to cancel existing carload and less than carload 
commodity rates (except rates published to meet truck or water competition), 
bases for rates, and Classification Exceptions on paper and paper articles other 
than those described hereinabove, more generally referred to in Item 1243 
of Exceptions to Southern Classification, as amended. 

It is Therefore Ordered, That Application No. 159 petitioning for author- 
ity to cancel Item 1243 of the Exceptions to Southern Classification, as 
amended, and to provide for rates on bases of the mileage scales set forth in 
Application No. 160, and that Application No. 160, as amended, except carload 
and less than carload rates, other than rates published to meet motor truck or 
water competition, bases for rates, and Classification Exceptions on paper and 
paper articles other than those described in Descriptions A, B, C and D 
hereinbefore named, be, and the same are, hereby denied. 

This 8th day of September, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1126. 

IN THE MATTER OF REVISION OF RAIL RATES ON SAND, GRAVEL, 
AND RELATED ARTICLES. (SFA Application No. 167.) DOCKET NO. 
1545. 

Order 
Appearances: 

Joseph P. Cook and Carl W. Dilli, Southern Railway System Lines, Wash- 
ington, D. C; H. V. Borjes, Atlantic Coast Line Railroad Company, 
Wilmington, N. C; J. A. Kane, Seaboard Air Line Railway, Norfolk, 
Virginia, for petitioners. 
J. Chas. Phelps, N. C. State Highway & Public Works Commission, Ra- 
leigh, N. C, for protestants. 



Decisions and Adjustments of Complaints 297 

This petition, filed on February 20, 1939, by J. G. Kerr, Chairman of the 
Southern Freight Association, Agent for North Carolina rail carriers, seeks 
authority to amend petition of March 12, 1938, In the Matter of Increases in 
Freight Rates and Charges, Dockets Nos. 191 and 1239, which petition was 
granted by the full Commission's report and order dated April 11, 1938. The 
effective date of the increases, however, was fixed in that order as July 15, 

1938, but by subsequent orders the effective date was postponed to May 15, 

1939. On this day the effective date is further postponed to May 29, 1939, in so 
far as truck, water or roadside competitive rates are concerned. The order 
authorizing a 10 per cent increase in normal or maximum rates is set aside. 
These latter rates are reconsidered in this proceeding. 

The proposed rates in this proceeding, covered by the aforementioned 
petition, which was heard by me on April 20, 1939, contemplates the sub- 
stitution of new scales of rates on Sand, Gravel, and related articles, for the 
present rates contained in the Commission's Circular No. 356, as modified by 
Docket 1239. It is proposed to apply these rates on intrastate traffic subject to 
a minimum weight of 80,000 pounds in closed cars, and 90,000 pounds in open- 
top cars, except when cars are loaded to full cubical or visible capacity, or to 
load limits, actual weight will govern. The present rates are applicable when 
in open-top equipment only. Additionally, the proposed rates will also apply 
on green sand and marl described in Circular No. 296, and on Limestone 
or Marble described in Circular No. 350. 

The scales proposed are those prescribed by the Interstate Commerce Com- 
mission in Docket 28051, Increases in Mississippi Freight Rates and Charges, 
decided November 8, 1938 (mimeographed), for application on Mississippi 
intrastate traffic on sand and gravel, for distances to and including 320 miles; 
beyond 320 miles the new scale represents the old Docket 17517 joint line scale 
increased 5 cents per ton, which scale will be applied for both single and joint 
line hauls, and which will become effective on interstate traffic intraterritorial- 
ly within the South on May 29, 1939. 

The proposed basic scales result, generally, in a ten per cent increase in 
single line rates on sand, gravel, and related articles, for distances to and 
including 320 miles; an increase of ten cents per ton beyond 320 miles to and 
including 480 miles; and an increase of 5 cents per ton throughout the rest of 
the intrastate scale. No increase is proposed in the present joint line scale 
for distances to and including 150 miles, at which point it becomes the same 
as the single line scale, with increases ranging from 3 cents per ton to 5 cents 
per ton throughout the remainder of the scale. On the other hand, the pro- 
posed basic scales will result generally in substantial reductions under the 
scales increased 10 per cent as authorized in the full Commission's order of 
April 11, 1938. 

This proceeding does not involve truck, water, or roadside competitive rates 
authorized to be increased 10 per cent by the aforementioned order dated 
April 11, 1938; neither does it involve a change in the present relief line 
arbitraries. 

Petitioners' witness testified that the proposed scales should be permitted 
to become effective and given a fair trial by all concerned, and that if found 
lacking in their purpose, further negotiations should be had between all in- 
terested parties, with view of adjusting the rates. 



298 N. C. Utilities Commission 

The North Carolina State Highway and Public Works Commission, prot- 
estant, opposed generally the proposed scales, contending that the rates 
should be made somewhat lower, not only to meet various forms of com- 
petition, but to enable the movement of more quality materials which can not 
now move under the present rates, increased ten per cent. 

Protestant introduced several exhibits comparing present rates on sand, 
gravel, stone, and agricultural limestone, with rates scheduled to become 
effective May 15, 1939, now postponed, and with the proposed rates. Also 
normal rates are shown as compared with reduced competitive rates from and 
to various points in North Carolina. The average of the normal rates shown on 
this particular exhibit (No. 16) is 86.8 cents per ton as compared with the 
average of the competitive rates of 63.1, a difference of 23.7 cents per ton. This 
difference, of course, will be lessened on May 29, 1939, when the competitive 
rates will be increased ten per cent and the normal rates will be increased, 
generally, less than ten per cent, the full amount sought in Docket 1239. 

The Lillington Stone Company shipped 73 per cent of its tonnage in 1937 
and 1938 on reduced competitive rates; the Material Sales Company shipped 
86% per cent of its tonnage during the last five months of 1937, and 89 per cent 
of its tonnage in the year of 1938 by rail. The remainder was shipped by truck. 
There is nothing in the record that would show what percentage of the rail 
traffic moved on competitive rates. The Goldsboro Sand Company shipped its 
entire output by rail in 1937 and 1938, approximately 90 per cent of which 
moved on reduced competitive rates. The North Carolina State Highway and 
Public Works Commission shipped from its Woodlawn quarry 78 per cent of 
its 1937 and 73 per cent of its 1938 tonnage by rail, the remainder by truck. 
The Raleigh Granite Company shipped during the years of 1937 and 1938, 
32.2 per cent and 30 per cent, respectively, of its tonnage by rail, the 
remainder by truck. 

In Dockets Nos. 191 and 1239, protestant opposed any increase in rates on 
sand, gravel, and related articles. Reasons therefor are included in the full 
Commission's decision of April 11, 1938, and need not be discussed here. At 
that time, however, it was testified, there were approximately one hundred 
portable crushers and stationary and semi-stationary crushers operated in this 
State. In 1938, ten such crushers were added and between January 1, and April 
15, 1939, three additional crushers were added. On the latter date there were 
121 crushers, 80 of which being portable and 41 being stationary and semi- 
stationary crushers. Protestant clearly shows that there has been a substantial 
increase in the use of this kind of crusher since 1930. Prior to 1931 there were 
34 crushers. The following number of crushers, for the years shown, have been 
added since 1930: 

1931 1932 1933 1934 1935 1936 1937 1938 1939 

10 7 11 8 8 17 13 10 3 

The record does not disclose the amount of tonnage turned out by these 
portable, stationary and semi-stationary crushers, but it is obvious, consider- 
ing the substantial increase in their number, from year to year, that the 
tonnage must be considerable. Neither does the record show whether the re- 
duced road-side competitive rates move, by rail, any or all of the tonnage in 
competition with local crushers. Only a presumption that tonnage does move 
under the reduced rates can be had; otherwise, it must be presumed that the 



Decisions and Adjustments of Complaints 299 

competitive rates are still too high to completely overcome this kind of com- 
petition. Be that as it may, only non-competitive or normal rates are here at 
issue. 

The question of revenue needs of the carriers was also considered in Dockets 
191 and 1239, which matter is thoroughly covered in the full Commission's 
decision of April 11, 1938, and need not be reiterated here since it appears in 
this proceeding that the condition of the railroads have improved very little, if 
any. In the former decision the Commission found that an increase of ten per 
cent in the rates on sand, gravel, and related articles justified, and that 
the proposed rates should be deemed maximum reasonable rates. As the rates 
here proposed will not exceed the rates found justified in the Commission's 
decision of April 11, 1938, many of which result in reductions, and as the pro- 
posed rates are more favorable to shippers in many instances than the present 
rates increased ten per cent, previously authorized, the petition will be 
granted. To deny the petition would place shippers at a disadvantage in that 
they would have, in many instances, higher intrastate normal rates than those 
to become effective May 29, 1939, on interstate commerce, after the increases 
of ten per cent previously authorized on intrastate rates, became effective in 
this state. 

The Commission's circulars carrying rates on all commodities in issue 
herein will be revised accordingly, and the rates herein approved are shown in 
Circular No. 364. 

In order that petitioners may publish the rates herein authorized simul- 
taneously with the effective date of the interstate rates, viz.: May 29, 1939, 
relief from the provisions of Section 4, Chapter 365 of the Public Laws of 
1939, is granted. 

It is Therefore Ordered, That Southern Freight Association Application 
No. 167, petitioning for authority to revise normal or maximum rates on Sand, 
Gravel, and Related Articles, be, and the same is, hereby granted. 

It is Further Ordered, That petitioners be, and they are, hereby granted 
relief from the provisions of Section 4, Chapter 365 of the Public Laws of 
1939, requiring thirty days' notice to the Commissioner and to the public, in 
order that the revised rates hereinabove granted may become effective on 
May 29, 1939. 

This 9th day of May, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1545. 

Numerous complaints from shippers, receivers, and carriers by railroad 
regarding the rates for transportation of sand, gravel, crushed stone, etc., 
in carloads, described in Item 1115-A, Agent Miller's N.C.U.C. 52, have been 
received by the Commissioner within the past year. 

General opinion was expressed by those parties interested in the movement 
of these materials that numerous subnormal competitively compelled specific 
rates, some of which complaining parties allege were established under 
mythical conditions, would be eliminated with the establishment of the pres- 
ent scales which became effective on April 30, 1940. However, establishment of 



300 



N". C. Utilities Commission 



the modified scale referred to, failing to bring about cancellation of sub- 
normal rates, has increased the demand for such rates, intensifying dissatis- 
faction in this traffic which is highly competitive between carriers and 
shippers. And upon consideration of these circumstances; 

It is Obdeeed, That all common carriers by railroad named in the list 
appended hereto, engaged in transportation of the materials described above, 
be and they are hereby, cited to appear before the Commissioner on Wednes- 
day, October 30, 1940, at 10:00 o'clock a.m., in his office at Raleigh to show 
cause, if any there be, why the scale of rates and the circuity limitations 
shown below should not be precisely established as minimum and maximum in 
lieu of the present specific rates, single and joint line scales, including short 
or weak line arbitraries. 

For Single or Joint Line Application Over All Lines 

Rates in Cents Per ton 2,000 Pounds 







A pplicable 






Applicable 






Over Routes 






Over Routes 


Miles 


Rates 


Not 

Exceeding 

(Miles) 


*Miles 


Rates 


Not 

Exceeding 
(Miles) 


10 


35 


17 


230 


145 


345 


20 


45 


34 


260 


155 


390 


30 


55 


51 


290 


165 


435 


40 


65 


68 


320 


170 


480 


50 


75 


85 


360 


180 


540 


60 


85 


102 


400 


190 


600 


80 


95 


136 


440 


200 


660 


100 


105 


170 


480 


210 


720 


125 


115 


212 


520 


225 


780 


150 


125 


255 


560 


225 


840 


175 


135 


262 


600 


235 


900 


200 


140 


300 









This the 6th day of September, 1940. 

Stanley Winboene, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1545. 

APPENDAGE 
To Oedee of Septembee 6, 1940. Docket No. 1545 
Aberdeen & Rockfish Railroad Co., Fayetteville, N. C, G. F. Dempsey, T. M. 
Asheville & Craggy Mountain Ry., Atlanta, Ga., C. H. Dunn, G. P. A. & T. M. 
Asheville Southern Railway Co., Atlanta, Ga., C. H. Dunn, G. F. A. & T. M. 
Atlantic and Carolina Railroad Co., Kenansville, N. C, James E. Jerritt, G. M. 
Atlantic and East Carolina Railroad Co., Kinston, N. C, E. R. Buchan, 
V. P. & T. M. 



* For any figure not listed above, use nearest greater figure that is listed. 



Decisions and Adjustments of Complaints 301 

Atlantic & Western Railroad Co., Sanford, N. C, E. T. Ussery, General Mgr. 
Atlantic and Yadkin Railway Co., Greensboro, N. C, A. L. Thompson, V. P. 

& T. M. 
Atlantic Coast Line Railroad Co., Wilmington, N. C, C. L. Hinnant, G. P. A. 
Black Mountain Railway Company, Erwin, Tenn., C. A. Smith, G. F. & P. A. 
Cape Fear Railways, Inc., Fort Bragg, N. C, H. A. Page, Jr., Pres. & G. M. 
Carolina Southern Railway Co., Windsor, N. C, C. H. Pruden, G. S. & T. M. 
Carolina & Northwestern Railway Co., Atlanta, Ga., L. P. Hungerford, 

G. F. & P. A. 
Carolina & Tennessee Southern Railway Co., Atlanta, Ga., C. H. Dunn, 

G. F. A. & T. M. 
Cliffside Railroad Company, Cliffside, N. C, Charles H. Haynes, President. 
Carolina, Clinchfield & Ohio Railway, Erwin, Tenn., C. A. Smith, G. F. & P. A. 
Danville & Western Railway Co., Atlanta, Ga., L. P. Hungerford, G. F. & P. A. 
Durham & Southern Railway Co., Charlotte, N. C, W. I. Rankin, T. M. 
East Carolina Railway, Farmville, N. C, W. H. Newell, Jr., General Mgr. 
East Tenn. & Western N. C. R. R. Co., Johnson City, Tenn., W. W. Whisman, 

Traffic Manager. 
Graham County Railroad Company, Robbinsville, N. C, L. R. Wilson, Secy. 
High Point, Randleman, Asheboro and Sou. R. R. Co., Atlanta, Ga., L. P. 

Hungerford, Gen'l Freight & Passenger Agent. 
High Point, Thomasville & Denton R. R. Co., High Point, N. C, F. J. Flagler, 

G. F. A. 
Laurinburg & Southern Railroad Company, Laurinburg, N. C, G. Y. Jones, 

Traffic Manager. 
Lawndale Railway & Industrial Co., Lawndale, N. C, J. F. Schenck, Pres. 
Linville River Railroad Co., Johnson City, Tenn., W. W. Whisman, T. M. 
Louisville & Nashville Railroad Co., Louisville, Ky„ C. D. Quinn, G. F. A. 
Moore Central Railway Company, Asheboro, N. C, Arthur Ross, Manager. 
Norfolk & Western Railway Company, Roanoke, Va., F. W. Jones, G. F. A. 
Norfolk Southern Railroad Co., Norfolk, Va., C. H. Ware, G. F. A. 
Piedmont & Northern Railway Co., Charlotte, N. C, L. R. Lawson, G. F. 

& P. A. 
Rockingham Railroad Company, Rockingham, N. C, W. H. Newell, Jr., G. M. 
Seaboard Air Line Railway, Norfolk, Va., C. L. Senter, Gen'l Frt. Agent. 
Southern Railway Company, Atlanta, Ga., A. E. Hendee, Gen'l Frt. Agent. 
State University Railroad Co., Atlanta, Ga., C. H. Dunn, G. F. A. & T. M. 
Tallulah Falls Railway Co., Cornelia, Ga., H. L. Brewer, Receiver & G. M. 
Tennessee & North Carolina Railway Co., Hayesville, N. C, R. S. Arnett, 

Auditor. 
Tuckaseigee & Southeastern Railway Co., East La Porte, N. C, Joseph Keys, 

President & General Manager. 
Virginia & Carolina Southern R. R. Co., Lumberton, N. C, J. Q. Beckwith, 

Vice President. 
Warrenton Railroad Company, Warrenton, N. C, D. C. Blalock, Supt. 
Wilmington, Brunswick & Southern R. R. Co., Southport, N. C, M. J. Corbett, 

Receiver. 
Winston-Salem Southbound Railway Co., Winston-Salem, N. C, S. P. Collier, 

Traffic Manager. 



302 "N". C. Utilities Commission 

Yadkin Railroad Co., Atlanta, Ga., L. P. Hungerford, General Freight Agent. 
The American Short Line Railroad Assn., 101 Marietta St., Atlanta, Ga., 

J. P. Blanton, Traffic Manager. 
Southern Freight Association, Atlanta, Ga., J. G. Kerr, Chairman. 
Docket No. 1545. 

IN THE MATTER OF INCREASES IN RAIL RATES ON VEHICLES, 

HORSEDRAWN, OR PARTS THEREOF, C. L. AND L. C. L., FROM 

HICKORY, WILSON AND WINSTON-SALEM TO POINTS IN NORTH 

CAROLINA. 

Order of Suspension 

It Appearing that there has been filed with the Utilities Commissioner 
Supplement 44-A to Agent F. D. Miller's Freight Tariff No. 715-A (North 
Carolina) stating new individual and joint regulations and practices affecting 
rates and charges on vehicles, horse drawn or parts thereof, carloads, and less 
than carloads, applicable from Hickory, Wilson and Winston-Salem to points 
in North Carolina, to become effective on the 20th day of May, 1939; 

It is Ordered, That the Commissioner upon complaint, without formal 
pleading, enter upon a hearing concerning the lawfulness of the rates, charges, 
regulations, and practices stated in the aforementioned schedule in so far as it 
cancels, changes, or otherwise affects rates, charges, regulations, and prac- 
tices applicable on vehicles, horse drawn or parts thereof, carloads and less 
than carloads, from Hickory, Wilson, and Winston-Salem to points in North 
Carolina; 

It Further Appearing, That said schedule makes certain increases in rates 
for the transportation of vehicles, horse drawn or parts thereof, carloads and 
less than carloads in intrastate commerce, and the rights and interests of the 
public appearing to be injuriously affected thereby, and it being the opinion 
of the Commissioner that the effective date of the said schedule should be 
postponed pending said hearing and decision thereon; 

It is Further Ordered, That the operation of the said schedule be suspended, 
and that the use of the rates, charges, regulations and practices therein 
stated be deferred upon intrastate traffic until the 20th day of August, 1939, 
unless otherwise ordered by the Commissioner, and no change shall be made 
in such rates, charges, regulations, and practices during the said period of 
suspension unless authorized by special permission of the Commissioner. 

It is Further Ordered, That the rates and charges and the regulations and 
practices thereby sought to be altered shall not be changed by any subsequent 
tariff or schedule until this investigation and suspension proceeding has been 
disposed of or until the period of suspension and any extension thereof has 
expired, unless authorized by special permission of the Commissioner. 

It is Further Ordered, That a copy of this order be filed with said schedule 
in the office of the Commissioner and that copies hereof be forthwith served 
upon F. D. Miller, Agent for carriers participating in said schedule, which 
carriers are hereby made respondents to this proceeding; 



Decisions and Adjustments of Complaints 303 

And it is Further Ordered, That this proceeding be set for hearing before 
the Utilities Commissioner in his office in Raleigh on Tuesday, June 6, 1939, at 
10:00 a.m. 

This 8th day of May, 1939. 

By Order of the Commissioner: 
R. 0. Seuf, Chief Clerk. 
Docket No. 1584. 

IN THE MATTER OF INCREASES IN RAIL RATES ON VEHICLES, 
HORSEDRAWN, OR PARTS THEREOF, C. L. AND L. C. L., FROM 
HICKORY, WILSON, AND WINSTON-SALEM TO POINTS IN NORTH 
CAROLINA. 

Order 
Appearances: 

Carl W. Dilli, Washington, D. C. for Respondents. 

A. J. Estes, Greensboro, N. C, F. B. Reamy, Winston-Salem, N. C, and 
T. J. Hackney, Wilson, N. C, for Protestants. 

By schedules filed to become effective May 20, 1939, respondents, Atlantic 
Coast Line Railroad Company, Norfolk Southern Railroad Company (Morris 
S. Hawkins and L. H. Windholz, Receivers), Southern Railway Company and 
other rail carriers, propose to increase the carload and less than carload rates 
on horsedrawn vehicles and parts from Hickory, Wilson, and Winston-Salem, 
from Columns 30 and 40 to Columns 35 and 45, respectively. The approximate 
percentage increase is 16.5 per cent on carloads, and 12.5 per cent on less than 
carloads. Upon protests from Piedmont Wagon & Manufacturing Company, 
Hickory, The Hackney Wagon Company, Inc., Wilson, and George E. Nissen 
Company, Inc., Winston-Salem, operation of the schedules was suspended 
until August 20, 1939, in accordance with Chapter 365 of the Public Laws of 
1939, and hearing thereon was had July 6, 1939. 

The normal ratings on horsedrawn vehicles in North Carolina are sixth 
class (40 per cent of 1st class) on carloads, and third class (70 per cent of 1st 
class) on less than carloads. These apply in connection with Docket 910 class 
rates. The present rates based on Docket 13494 rates, effective June 10, 1930, 
were established in 1934 to meet motor truck competition and as such were 
increased ten per cent in 1938. Increases in Rail Freight Rates and Charges, 
1938, Docket No. 1239. At the present time Motor Vehicle Carriers publish 
Columns 30 and 40 on carloads and less than carloads, respectively, in Agent 
R. S. Cooper's N.C.U.C. No. 4, using as a basis Docket No. 910 class rates 
prescribed in 1937 for account of rail carriers. The motor carrier rates, not 
increased in 1938, are approximately 91 per cent of rail rates applying on 
North Carolina intrastate traffic. 

Respondents show that the suspended carload rates on horsedrawn vehicles 
and parts, from Hickory, Wilson, and Winston-Salem to 45 North Carolina 
destinations average 1.8 cents, 1.9 cents, and 1.7 cents per 100 pounds, re- 
spectively, under normal sixth class rates, and that the suspended less than 
carload rates average 18.6 cents, 19.9 cents, and 17.5 cents per 100 pounds, 
respectively, under the normal third class rates. 

Comparisons of present rates from Clarksville, South Clarksville, and 
Lynchburg, Va., to forty-five destination points with present and suspended 



304 ST. C. Utilities Commission 

rates from Hickory, Wilson, and Winston-Salem to the same destinations are 
also made by respondents. This comparison reveals that the average suspended 
rates are 33.4 and 42.9 cents on carloads and less than carloads, respectively, 
as contrasted with the average present rates from the three Virginia points of 
37.0 and 47.9 cents, respectively, a difference of 3.6 cents and 5.0 cents on car- 
loads and less than carloads. Such comparison does not properly depict a mile 
for mile situation as, on an average, the distances from the three North Caro- 
lina origins are less than the distances used from the Virginia origins which, 
of necessity, results in a difference unfavorable to the North Carolina shippers. 
By comparing the suspended rates, mile for mile, with the present rates from 
the Virginia points, a different picture, more accurate than the one given by 
respondents, is shown. Under this formula the suspended rates average 39.0 
cents on carloads, and 49.5 cents on less than carloads, reflecting a difference 
of 2.0 cents and 1.7 cents in favor of the Virginia shippers. 

A list of 24 commodities on which the Interstate Commerce Commission has 
prescribed less than carload ratings of 45 per cent of first class or higher 
within Southern territory was offered by respondents. Included as taking 45 
per cent of first class are barytes, clay, grey goods, mortar color, ochre, plaster, 
silica, and talc. As of March 30, 1938, however, there were 197 articles listed in 
the Southern Classification as taking less than carload fifth (45 per cent of 
first) class. At that time only 191 articles moving in less than carload quan- 
tities took lower ratings, while 8,786 articles, moving in less than carload 
quantities, were rated higher. 

Statistics were given by respondents showing movements of horsedrawn 
vehicles and parts, and revenue thereon under present rates and suspended 
rates, for three months of October, 1938, and March and April, 1939, from 
Winston-Salem and Hickory, via Southern Railway Company, and for a twelve- 
month period from May, 1938, through April, 1939, from Wilson via Atlantic 
Coast Line Railroad. A total of 166 L. C. L. shipments weighing 108,401 pounds 
moved from the latter point via the Atlantic Coast Line Railroad. The revenue 
therefrom amounted to $321.38. The same traffic, under the proposed or sus- 
pended rates, would produce a revenue of $357.89, a difference or an increase 
of $36.51 for the year. There is no evidence which would show the amount of 
tonnage shipped via the Norfolk Southern Railroad from Wilson. 

One hundred and forty-two L. C. L. shipments weighing 68,843 pounds moved 
from Winston-Salem via the Southern Railway during the three representa- 
tive months referred to. The charges thereon were $255.45. If increased to the 
suspended basis, the charges would be $283.72, a difference of $28.27, or 
approximately $113.08 for a year. 

There moved from Hickory via the Southern Railway during the same three 
months fifty-five less than carload shipments weighing 42,380 pounds on which 
charges were $200.99 which, if the suspended rates had applied, would have 
been $225.20, a difference of $24.21 or, for a year, $96.84. 

Similar statistics covering movements out of Winston-Salem via Winston- 
Salem Southbound and Norfolk & Western, and out of Hickory via Carolina 
and Northwestern Railway were not offered. 

Although protestants did not submit any figures they contend that the three 
months used by Southern Railway in its tests are not representative months. 

Protestants also contend that their industry can not stand any further 
increase in their transportation costs. Without sufficient data, however, it can 



Decisions and Adjustments of Complaints 305 

not be decided whether or not an additional transportation cost can be ab- 
sorbed. It appears, neverthless, that the Virginia manufacturers have an 
advantage over the manufacturers in this State in drawing raw materials into 
their plants, and as the manufacturers compete with Virginia in reaching 
North Carolina markets it is contended that the rates are now high enough. 

As the present rates were issued to meet motor truck competition, and as 
they have already been increased ten per cent, it also appears that approxi- 
mately forty per cent of shipments from Winston-Salem and fifty per cent of 
shipments from Wilson move via motor vehicle carriers, the majority of the 
latter so moving because highway carriers have provided a minimum weight 
of 10,000 pounds which rail carriers, it is contended, have declined to establish. 
It is not believed that the industry should be required to pay an additional 
increase of 16.5 per cent on carload and 12.5 per cent on less than carload ship- 
ments of horsedrawn vehicles and parts when a considerable portion appears 
to continue to move over the highways and when, to authorize suCh increases, 
the interstate rates from Virginia will be lower than the intrastate rates. 

Protestants also compete with each other; however, there is nothing of 
record which indicates that there is competition with shippers in states other 
than Virginia. 

The Interstate Commerce Commission, in a number of instances, has said 
that it has no power to prescribe competitive rates, but that the establishment 
of such rates is within the discretion of carrier management. North Carolina 
laws permit carriers to reduce their rates and charges without interference by 
this Commission. In the past we have confined our rate-making to maximum 
reasonableness and have prescribed no competitive rates. We have, however, 
full power to remove discrimination, prejudice and preference whether they 
are found to exist in normal or in competitive rates. It is necessary, moreover, 
to consider interstate rates into North Carolina in fixing intrastate rates, 
whether such rates are normal or competitive rates. 

The rates on horsedrawn vehicles and parts from Hickory, Wilson and 
Winston-Salem were excluded from the 1937 Intrastate Class Rate Investiga- 
tion, Docket 910. It was considered that those rates, issued to meet motor 
truck competition, were commodity rates on which I. C. C. Docket 13494 rates 
were authorized to continue in effect. Docket 910 class rates were made in 
relation to class rates prescribed by the Interstate Commerce Commission in 
Docket 21665 between Virginia and Official territory, on the one hand, and 
North Carolina, on the other hand. I. C. C. Docket 21665 rates from Virginia 
to North Carolina apply in connection with horsedrawn vehicles and parts. 
Docket No. 910, North Carolina intrastate class rates, should also apply on 
these articles. 

Respondents have justified the proposed Columns of 35 and 45 on the articles 
in question, carloads and less than carloads, respectively, but the proposed 
rates have not been justified. The suspended schedules will be ordered can- 
celled, and the proceeding will be discontinued, without prejudice to the filing 
of new schedules of Columns 35 and 45 on carloads and less than carloads, 
respectively, of horsedrawn vehicles and parts in connection with Docket 910 
class rates. 

It is Therefore Ordered, That the respondents in this proceeding be, and 
they are hereby notified and required to cancel schedules published to become 

20 



306 JST. C. Utilities Commission 

effective May 20, 1939, on or before August 20, 1939, upon notice to this Com- 
mission and to the general public by not less than five days' filing and posting, 
and that this proceeding be discontinued, without prejudice to the filing of 
new schedules in accordance with the foregoing opinion. 
This the 1st day of August, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1584. 

APPLICATIONS OF AGENT C. F. JACKSON TO APPLY ON NORTH CARO- 
LINA INTRASTATE TRAFFIC INCREASES IN SUPPLEMENTS NOS. 

1 AND 2 TO NATIONAL MOTOR FREIGHT CLASSIFICATION NO. 3, 

N. C. U. C. NO. 4. 

Order 

These applications, dated March 24, and April 23, 1938, were heard on June 
13, 1938, along with one from Agent R. S. Cooper, dated April 27, 1938, for 
authority to increase rates and charges published in his Motor Freight Tariff 
No. 1-A, N. C. U. C. No. 4. The North Carolina Franchise carriers concluded not 
to pursue further the latter application and by my order issued on November 
9, 1938, the same was dismissed. 

A statement in support of the increases in the classification ratings, rules 
and charges was prepared by Agent Jackson and introduced in the record by 
Agent Cooper. 

Supplement No. 1 to National Motor Freight Classification No. 3, contains 
increases published pursuant to the general program which followed the pro- 
ceedings in Ex Parte No. 123 before the Interstate Commerce Commission, and 
Docket No. 1239 before this Commission. 

Rule No. 12 therein contains an increase in the minimum charge per ship- 
ment from 50 cents to 55 cents. 

Rule No. 31 provides an increased basis of fees for collecting and remitting 
C.O.D. amounts and are uniformly 10 per cent. 

Minimum charge notes in Item No. 3, page 8; Item No. 27, page 13; Item 
No. 2, page 14; and Item No. 11, page 16 of Supplement No. 1; also Item 6%, 
page 7 of Supplement No. 2, are proposed to be increased 10 per cent. At the 
present time the minimum charge is $1.00. 

Increases are also proposed in ratings and provisions which will cover only 
the items listed below, as appearing in Supplement No. 1: 

Item Description 

Asbestos Doors 

Door or Window frames, S. U. 

Sash, S. U. 

Scrap Cellulose derivative plastics, other than Pyroxylia 

Counter or show case store display refrigerators. "Vol." 

Wet Fulminate of Mercury 

Road Models 



No. 


No 


8 


11 


9 


5 


9 


7 


10 


2 


10 


15 


11 


10 


13 


22 



Page 


Item 


No. 


No. 


15 


1 


16 


4 


16 


21 


16 


26 



Decisions and Adjustments of Complaints 307 

Description 

Bath tubs, vol. min. wt. 

Maple Sugar, vol. min. wt. 

Japanese Beetle traps 

Waste: Rayon or Rayon and Cotton. 

It is stated that the increase symbol in Item 10, page 11 of Supplement No. 
1, is in error — the minimum weight therein being the same as that shown in 
the previous item 28, page 76 of the Classification. 

The increases proposed in the ratings on the articles above listed amount 
to one class, or the raising thereof from one class to the next higher class. 

The increases shown opposite the descriptions in Item 26, page 16 of Sup- 
plement No. 1, indicate slight revisions in packing specifications with respect 
to commodities covered by a portion of Item 14, page 213 of Classification, the 
remainder being cancelled by Item 18, page 15 of the same supplement. With 
respect to such changes, the rating is reduced one class which, it is contended, 
more than offsets any slight increase which may result from the description 
change. 

The increase indicated in Item 21, page 16, is of a similar nature to that 
above — the change being the elimination of the former provision permitting 
shipment of liquid trap bait with the traps at the trap rating. 

Item No. 1, on page 7 of Supplement No. 2, contains an increase resulting 
from the cancellation of the former volume rating on Balsa Wood, making the 
former first class L. T. L. rating apply on any quantity. 

The increase proposed in Item 3, page 7 of Supplement No. 2, covering bird 
cages, results in the elimination of the words "nested" and "not nested," when 
moving "set up." The present rating of first class thereon when nested would 
become double first class. 

Very few increases are here proposed and only very little interest has been 
manifested therein. These are strictly classification matters and any revision 
made in such is not to be construed as authorizing changes in exceptions or 
commodity rates contained in other publications applying on North Carolina 
intrastate traffic. In so far as these proposals are concerned, in the interest of 
classification uniformity, they will be approved. In the event, however, there 
should be a necessity for a lower or different rating, rule or charge in con- 
nection with the items under review, they should be considered separately, 
and each on its merit, and if found, due to conditions surrounding each, that a 
different treatment should be accorded, exceptions thereon should be published. 

It is Therefore Ordered, That applications of Agent C. F. Jackson for 
authority to apply the increases in ratings, rules and charges, as published in 
Supplements Nos. 1 and 2 to National Motor Freight Classification No. 3, 
N. C. U. C. No. 4, be, and the same are, hereby approved. 

This 14th day of November, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1232. 



308 "N. C. Utilities Commission 

IN THE MATTER OF INCREASES IN RAIL FREIGHT RATES AND 

CHARGES, 1938 

Order 

Fourth Supplemental Order on Further Consideration 

It Appearing, That the negotiations with the rail carriers hy various High- 
way Commissions and Southern Shippers for a more equitable and uniform 
level of rates on crushed stone, sand, gravel, etc., have not been concluded, as 
evidenced by letter dated December 3, 1938, file 6- (S) 17373, and signed by 
J. G. Kerr, Chairman of Southern Freight Association, Atlanta, Ga., and upon 
request of the North Carolina State Highway and Public Works Commission 
for further postponement of the increases in rates on so-called highway con- 
struction materials, now scheduled to become effective on January 15, 1939; 

It is Therefore Ordered, That the Commission's Order of April 11, 1938, 
authorizing an increase of 10 per cent in the rates on Marble, Granite, and 
Stone (crushed or rubble), Stone screenings, Gravel, Slag, Sand, etc., and 
Limestone, as described in Circular No. 356, included in the appendix thereto, 
effective on July 15, 1938, postponed to October 15, 1938, by Second Sup- 
plemental Order dated July 6, 1938, and further postponed to January 15, 
1939, by Third Supplemental Order dated October 6, 1938, be and the same is, 
hereby amended by making May 15, 1939, the effective date of the said in- 
creases instead of January 15, 1939, as presently authorized. 

It is Further Ordered, That in all other respects, said order of April 11, 
1938, shall remain in full force and effect. 

This 4th day of January, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1239. 

IN THE MATTER OF INCREASES IN RAIL FREIGHT RATES AND 
CHARGES, 1938. DOCKET No. 1239 

Order 

Fifth Supplemental Order on Further Consideration 

The Commissioner this day, having issued his order in Docket 1545, ap- 
proving Southern Freight Association Intrastate Application No. 167, dated 
February 17, 1939, which application was heard on April 20, 1939, and which 
requested authority to revise normal or maximum rates on marble, granite 
and stone (crushed and rubble), stone screenings, gravel, slag, sand, etc., and 
limestone, as described in Circular No. 356, to become effective simultaneously 
with the interstate rates on May 29, 1939; 

It is Ordered, That Fourth Supplemental Order in this proceeding dated 
January 4, 1939, postponing to May 15, 1939, the effective date of the increases 
on the aforementioned commodities covered by the full Commission's order 
dated April 11, 1938, be, and the same is, hereby postponed to May 29, 1939, 
in so far as the increases on truck, water, or roadside competitive rates are 
concerned. 



Decisions and Adjustments of Complaints 309 

It is Further Ordered, That the order of the full Commission dated April 
11, 1938, authorizing an increase of ten per cent in normal or maximum rates 
on the aforementioned commodities scheduled to become effective May 15, 
1939, be, and the same is, hereby modified to the extent that the authority 
therein granted to increase said normal or maximum rates is set aside, said 
rates having been considered and revised in Docket 1545, report on which is 
dated May 9, 1939. 

It is Further Ordered, That in all other respects said order of April 11, 
1938, shall remain in full force and effect. 

This 9th day of May, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1239. 

IN THE MATTER OF FURTHER INCREASES IN RATES ON PULPWOOD. 
(SFA Application No. 165.) 

Order 

Sixth Supplemental Order 
Appearances: 

Joseph Marks and L. L. Oliver, Southern Railway, Washington, D. C, 
R. G. Hodgkins and R. B. Warner, Atlantic Coast Line Railroad Co., 
Wilmington, N. C, and J. A. Kane, Seaboard Air Line Railway, Norfolk, 
Virginia, for applicants. 
A. G. Dettmer, Three Rivers, Mich., for North Carolina Pulp Company, 
Paul D. Cook, Hamilton, Ohio, and J. H. Keener, Canton, N. C, for 
Champion Paper and Fibre Company, protestants. 

On April 11, 1938, North Carolina rail carriers were authorized to increase 
intrastate rates and charges, with certain exceptions, by the same amounts as 
authorized by the Interstate Commerce Commission on interstate traffic, 226 
ICC 41. There appeared, however, to be some question concerning the amount 
of increase to be made in rates on pulpwood and extract wood, and on April 
25, 1938, first supplemental order, reading as follows, was issued: 

"Question has arisen relative to the amount of increase authorized in our 
order of April 11, 1938, on Pulpwood and Extract Wood, carloads. The 
order is interpreted as authorizing the maximum of 10 per cent on such 
movements. We authorized only 5 per cent on Lumber and articles related 
thereto, Logs and Fire and Fuel Wood, and our order should be amended 
to authorize only 5 per cent on Pulpwood and Extract Wood, carloads, in 
order that no prejudice or preference will result. 

"It is Therefore Ordered, That our Order of April 11, 1938, be, and the 
same is hereby, amended by authorizing only 5 per cent increase in rates 
on Pulpwood and Extract Wood, carloads. 

"It is Further Ordered, That this provision shall become effective on 
April 30, 1938." 

The present proceeding results from an application filed by Southern 
Freight Association for and in behalf of rail carriers operating in this state, 



310 IN". C. Utilities Commission 

petitioning for reopening and reconsideration of the original report, as 
amended, in so far as that report and order, as amended, involves rates on 
pulpwood, in carloads, and requesting that the full ten per cent allowed by the 
Interstate Commerce Commission on interstate movements be authorized on 
North Carolina intrastate commerce. 

Hearing was held on February 28, 1939. 

Applicants submit that their inability to make increases in intrastate rates 
to correspond with increases made in interstate rates results in undue pref- 
erence to shippers and receivers of pulpwood in this state and undue prejudice 
to shippers and receivers handling pulpwood in interstate commerce; or in 
intrastate commerce in Florida, Louisiana, Mississippi, and South Carolina, 
on which traffic rates have been increased ten per cent. It is also submitted 
that carriers' inability to increase intrastate rates ten per cent results in 
undue prejudice to those carriers operating interstate routes between points in 
North Carolina. 

Applicants contend that the present scale on pulpwood is extremely low 
and that even with the small increase now being sought the rates will still be 
on a very low level. The so-called Roanoke Rapids and Hopewell scales ap- 
plicable on interstate traffic have been increased ten per cent as have been 
intrastate rates within Virginia. 

Normal and truck competitive rates on pulpwood were compared with rates 
on lumber. This comparison reveals that the former rates are considerably 
less than those on lumber. The truck competitive rates are 83.7 per cent of the 
normal scale, but if increased the full ten per cent now sought, they would be 
86.2 per cent of the normal rates. 

Present and proposed rates and car revenues on pulpwood were also com- 
pared with rates and car revenues on cement, lime, scrap iron and steel, 
common brick, road building materials, stone, marble, granite, and tile. In each 
of the instances given, both the present and proposed rates result in car 
revenues somewhat lower than car revenues on the commodities with which 
they are compared. The proposed rates on pulpwood are shown to produce 
less revenues than rates on sand, gravel, etc., which, for average distances in 
the scales to and including 250 miles, are 7.4 and 8.7 miles, respectively, per 
ton miles, and that on May 29, 1939, the effective date of the new adjustment 
of rates on sand, gravel, etc., a greater spread prevails. 

The rates in effect at this time, generally, are lower than rates made by the 
so-called Modified Associated Railway scale, which is published but is more 
or less obsolete. The lower rates were established in anticipation of a large 
outbound movement of pulp which, it is contended, did not materialize to the 
full expectations of applicants. 

Certain statistics on the movement of pulpwood to and from Charleston, 
S. C, before and after the South Carolina Commission authorized the full 
increase of ten per cent, indicate that the increases had no deterring effect 
upon it, and it is the belief of applicants that the traffic can stand a ten per 
cent increase without any appreciable effect upon the volume of movement. A 
statement showing by months the movement of pulpwood via the Atlantic 
Coast Line Railroad from South Carolina points to Charleston, S. C, be- 
ginning with November, 1937, and ending with November, 1938, was placed in 
the record. The only months included in this statement, however, that can be 



Decisions and Adjustments of Complaints 311 

compared are November, 1937, and November, 1938. The movements in Novem- 
ber, 1938, was larger by 3,038.45 tons than in November, 1937. 

An exhibit designed to show, among other things, the revenue needs of the 
Class I carriers operating in North Carolina and covering a seventeen year 
period from 1921 to 1937, was introduced in this proceeding. It is shown that 
while railway operating expenses have been curtailed to the "lowest possible 
minimum," revenues have so substantially declined that for the past several 
years the carriers have been unable to earn anything like a fair return on their 
investment and, therefore, have not been able properly to maintain their 
property beyond what would be commensurate with the safety of the traffic. 

The actual rate of return for the Class I Railroads operating in North Car- 
olina, as a whole, was six per cent for 1925 and 1926; five per cent for 1923, 
1924, 1927, 1928, and 1929; four per cent for 1922, 1930, and 1936; three per 
cent for 1933, 1934, 1935, and 1937; two per cent for 1921 and 1931; and one per 
cent for 1932. Individually, these eight railroads earned, for the seventeen 
year period mentioned, as little as minus one per cent, representing the Nor- 
folk Southern Railroad for the year of 1932, and as much as nine per cent, 
representing the Norfolk and Western Railway Company for the years of 
1926 and 1929. The average in the aggregate is four per cent, which was ex- 
perienced thirty-two times. No carrier, however, had a four per cent rate of 
return for 1930, 1931, 1933, 1934, and 1935, although there was a higher rate of 
return reported during these years by the Norfolk and Western Railway Com- 
pany. Since 1928, four per cent was earned by only the Seaboard Air Line 
(1929), Norfolk and Western Railway (in 1932), Clinchfield Railroad (in 
1936 and 1937), Louisville and Nashville Railroad (in 1936), and Piedmont 
and Northern Railway (in 1937). 

The majority of pulpwood movements are handled by the Atlantic Coast 
Line, Norfolk Southern, Seaboard Air Line, and Southern Railway, which 
lines earned the following rates of return for the years shown: 



Rate of 
Return 


1930 


1931 


1932 


1933 


1934 


1935 


1936 


1937 


4% 


















3% 


Sou. 
A.C.L. 

N.S. 
S.A.L. 












Sou. 
A.C.L. 

N.S. 
S.A.L. 


Sou. 


2% 

1% 
0% 


A.C.L. 

N.S. 

S.A.L. 

Sou. 


Sou. 

A.C.L. 

S.A.L. 

N.S. 


Sou. 

A.C.L. 

N.S. 

S.A.L. 

S.A.L. 


Sou. 

A.C.L. 

N.S. 
S.A.L. 


Sou. 

A.C.L. 

N.S. 


A.C.L. 

N.S. 
S.A.L. 


-1% 

















In so far as other revenue statistics are concerned it is believed that their 
review by the full Commission in the original order in these proceedings, 
issued April 11, 1938, suffices in the instant case as there appears to be no 
material change in transportation and financial conditions of applicants. 

The North Carolina Pulp Company, Plymouth, N. C, one of the protestants 
in this proceeding, offered testimony directed largely to the commercial side of 
the issues involved, and the remarks of the witness were directed entirely to 
the manufacture of sulphate craftpulp. No paper is manufactured in North 
Carolina by this company, nor by its parent company, The Kieckhefer Con- 



312 JT. C. Utilities Commission 

tainer Company. The Plymouth plant was built for the purpose of supplying 
the company's paper mills located at Delair, N. J., Three Rivers, Mich., and 
White Region, Mich., with pulp which, in the past, came from abroad. 

The daily capacity of the Plymouth plant is 300 air-dried tons, or 540 tons 
in semi-dry form. The latter contains approximately 45 per cent moisture and 
comprises the shipments from Plymouth. There was an increase of 1,082,385 
tons of pulp produced in 1938 over 1936. In 1937, the capacity of the nation's 
plants was 2,070,698 tons of which 76 per cent was in Southern territory. In 
1937, the nation's production was 1,955,000 tons, 77 per cent of which was 
produced in Southern territory. The nation's production increased to 2,145,000 
tons in 1938, of which 84 per cent was produced in Southern territory. The 
consumption of pulp in the United States has been greater than production, 
while production has been less than plant capacity. 

Imports of pulp from Canada and Europe were smaller in 1937 than in 1936; 
however, imports were necessary to meet consumption, which in 1936 and 1937 
were 28 per cent and 24 per cent, respectively, of the United States consump- 
tion. As compared with United States production, imports represented 38 per 
cent and 32 per cent, respectively, for the years of 1936 and 1937. The nation's 
consumption of pulp has increased from 720,773 tons in 1925, to 2,565,950 tons 
in 1938, which alone shows that the pulp industry has become a very im- 
portant one, not only to paper companies but to transportation companies as 
well. More than fifty per cent of the pulp exported from Sweden, Norway, and 
Canada, in 1937, came to the United States. In 1938, however, there was a 
considerable drop in pulp exports from the above nations to the United States. 
It is clearly shown, therefore, that the United States pulp companies are en- 
deavoring to supply the needs of the paper plants for all their requirements of 
pulp. It is also clearly shown that the pulp industry has recognized the South's 
possibilities in this field; consequently transportation companies in Southern 
territory are handling tonnage which, several years ago, moved over carriers 
in other territories. 

The record is replete with testimony concerning the decline of foreign pulp 
prices on the Atlantic Seaboard and while these prices dropped from $67.50 per 
ton in 1938, to $28.00 per ton this year, it is evident that foreign nations will 
continue to fight to supply a considerable portion of the United States require- 
ments. There is no import duty or excise on foreign shipments. It appears, 
therefore, that the cost of transporting pulpwood to pulp plants plays a very 
important part in production costs. If these costs are excessive, the United 
States will be the loser and this includes Southern railroads. 

The witness for the Champion Paper and Fibre Company, with a plant at 
Canton, N. C, testified that 12,031 cars of pulpwood were received at Canton 
during 1938. This movement consisted of both interstate and intrastate ship- 
ments. Fourteen thousand one hundred and fifteen cords were received by truck. 
It is estimated that 225,000 cords, or approximately 18,750 cars, approximately 
70 per cent of which will be intrastate, will be shipped to the Canton plant 
during 1939. In 1937, that plant shipped 3,427 carloads of pulp as compared 
with 2,039 cars shipped in 1938, a decrease of 1,388 cars. It is contended that 
any additional transportation costs will make it more difficult to manufacture 
and sell pulp in important Northern markets, thus producing a considerable 
loss by the railroads, as well as the manufacturer, of a substantial business now 
moving. 



Decisions and Adjustments of Complaints 313 

It is also contended that should the pulpwood rates be increased the full ten 
per cent sought there will be an added incentive to increase the scope of 
trucking operations in order to hold down transportation costs. An additional 
50 cents per cord is allowed the farmer for trucked wood delivered to the 
Canton plant which is, of course, greater than the price paid f.o.b. car at rail 
shipping point. Based on rate of $1.33 a cord for a distance of 55 miles, the 
trucking of wood saves 66 cents a cord when moved by truck. Such facts cannot 
be ignored. 

The record refers to several pulpwood scales. The Roanoke Rapids scale was 
established by the Seaboard Air Line Railway to Roanoke Rapids in 1909. The 
Hopewell scale, also referred to, appears to be the same as the Roanoke Rapids 
scale. The Atlantic Coast Line Railroad, in 1908, published rates based on the 
Associated Railway scale, which later was modified and referred to as the 
Modified Associated Railway scale. Later it was found necessary to substitute 
the Roanoke Rapids scale for the Modified Associated Railway scale and as the 
former was increased ten per cent on interstate traffic under authority of 
Ex Parte 123, applicants desire the full ten per cent on North Carolina intra- 
state traffic. 

As an inducement to the North Carolina Pulp Company to locate on the 
Atlantic Coast Line at Plymouth that line, because a higher scale was objected 
to, promised to publish the Roanoke Rapids scale, which became effective in 

1937. It is obvious that pulpwood would not move freely on any other scale. By 
comparison it is lower than scales of rates applying on many other low-grade 
commodities, but this fact alone can not be considered as branding the scale 
as unremunerative. When the Roanoke Rapids scale was promised the North 
Carolina Pulp Company, it was known by the Atlantic Coast Line Railroad 
that the publication of a higher scale would be more than the traffic could bear 
and it does not appear to be reasonable now to increase pulpwood rates again 
and thereby escape from the agreement to provide rates sufficiently low to 
move and to continue to move the traffic. 

Irrespective of the above referred to premise, pulpwood rates were increased 
five per cent on April 30, 1938, and it is my opinion, considering all facts 
embraced in the record in this proceeding, that no further increase is justified. 

It is Therefore Ordered, That Southern Freight Association Application 
No. 165, petitioning for an increase of ten per cent on pulpwood, in carloads, 
in lieu of five per cent authorized in this Commission's Order dated April 11, 

1938, as amended by Supplemental Order dated April 25, 1938, be, and the 
same is, hereby denied. 

It is Further Ordered, That in all other respects said order of April 11, 
1938, as amended, shall remain in full force and effect. 
This 12th day of June, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1239. 



314 1ST. C. Utilities Commission 

IN THE MATTER OF PETITION OF SOUTHERN FREIGHT ASSOCIATION 
FOR REHEARING AND RECONSIDERATION OF ORDER DATED JUNE 
12, 1939, INCREASES IN RATES ON PULPWOOD, CARLOADS. 

Order 

Seventh Supplemental, Order 

Upon consideration of Application No. 170, dated September 9, 1939, filed by 
Chairman J. G. Kerr, Southern Freight Association, Atlanta, Georgia, for and 
on behalf of rail carriers operating in the State of North Carolina petitioning 
for reopening, rehearing, and reconsideration of Docket No. 1239 before the 
full Commission in so far as it involves rates on pulpwood in carloads between 
points in North Carolina: 

Section 10, Chapter 134 of the Public Laws of 1933, Consolidated Statute 
1112 (i), provides ab initio that any party to a proceeding may request the 
Associate Commissioners to sit with the Utilities Commissioner, thereby 
constituting the full Commission to hear and determine matters or hear issues 
of fact. 

Rule 15(1)8 of our Rules of Practice, promulgated pursuant to Consolidated 
Statute 1092, provides that petitions for rehearing must be filed within thirty 
days after the issuance of final order in the case. 

It is the opinion of the Commissioner that failure to request that the 
Associate Commissioners sit with the Utilities Commissioner at the time 
North Carolina Intrastate Application No. 165, dated October 20, 1938, was 
filed, or at any time within ten days of the hearing, serves as a bar to deprive 
applicant of subsequently requesting a full Commission hearing. The Com- 
missioner, in his discretion, without request for a full Commission hearing, 
granted aforesaid North Carolina Intrastate Application No. 165 petitioning 
for reopening and reconsideration of this matter in order to allow the rail- 
carriers to offer evidence concerning rates on pulpwood, which evidence was 
not contained in the original record taken in 1938 by the Commissioner, with 
Associate Commissioner Frank W. Hanft sitting with him. The granting of 
said Application No. 165 afforded the rail carriers an opportunity to make an 
individual record and afforded the Commissioner an opportunity of rendering 
a separate decision concerning rates on pulpwood. 

As a limitation as to time in which to petition for rehearing of matters was 
necessary in order to bring about an end to cases and that thirty days provided 
for that purpose is a reasonable period, it is further the Commissioner's opin- 
ion that the present application should be denied for failure of applicant to file 
same within said period of thirty days required by Rule 15(1)8 of the Com- 
mission's Rules of Practice and Procedure. 

It is Therefore Ordered, That Southern Freight Association Application 
No. 170, petitioning for reopening, rehearing, and reconsideration of rates on 
pulpwood in carloads be, and the same is, hereby denied. 

This 2nd day of October, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1239. 



Decisions and Adjustments of Complaints 315 

IN THE MATTER OF GENERAL RELIEF TO CARRIERS BY RAILROAD 
FROM OPERATION OF THE LONG AND SHORT HAUL LAW, C. S. 1072, 
BY CIRCUITOUS OR INDIRECT ROUTES IN CONNECTION WITH 
NORMAL SCALES OR LEVELS OF CLASS AND COMMODITY FREIGHT 
RATES BASED ON DISTANCE OVER LINES OR ROUTES OF THE 
SHORTEST MILEAGE. DOCKET No. 1979. 

Order 

It Appearing, That the Commission on May 10, 1915, in the matter of freight 
shipments by competitive routes and between competitive points entered an 
order granting authority to all railroad companies to accept shipments of 
freight by other than the most direct route at the short route rate; 

It Further Appearing, That routing circulars filed with the Commissioner 
by the carriers under the order referred to above, some of which contain 
numerous exceptions to the general provision of open routes, are less available 
than tariffs to tariff users resulting in uncertainty and confusion contributed 
to by other or further routing departures from the usual in tariffs embracing 
both normal levels and specific point-to-point rates; 

It is, Therefore, Ordered, That all common carriers by rail, named in the 
appendage, engaged in intrastate commerce between points in the State of 
North Carolina, be, and they are each hereby, severally or collectively cited 
to show cause, if any there be, by formal return filed with the Commissioner 
on or before July 15, 1940, why order of May 10, 1915, and orders referred to 
therein should not be vacated and set aside and that there be established in 
lieu thereof the provisions for general relief from C. S. 1072, in connection 
with normal scales or levels of short route distance class and commodity 
rates, or rates relatively so constructed, as set forth in the appendage. 

This the 13th day of May, 1940. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1979. 

APPENDAGE 

To Order of May 13, 1940, Under C. S. 1072 
Aberdeen & Rockfish Railroad Co., Fayetteville, N. C, G. F. Dempsey, T. M. 
Asheville & Craggy Mountain Ry., Atlanta, Ga., C. H. Dunn, G. F. A. & T. M. 
Asheville Southern Railway Co., Atlanta, Ga., C. H. Dunn, G. F. A. & T. M. 
Atlantic and Carolina Railroad Co., Kenansville, N. C, James E. Jerritt, G. M. 
Atlantic and North Carolina Railroad Co., Kinston, N. C, E. R. Buchan, 

Vice President & Traffic Manager. 
Atlantic & Western Railroad Co., Sanford, N. C, E. T. Ussery, Gen'l Mgr. 
Atlantic and Yadkin Railway Co., Greensboro, N. C, A. L. Thompson, 

Vice President & Traffic Manager. 
Atlantic Coast Line Railroad Co., Wilmington, N. C, C. L. Hinnant, G. F. A. 
Black Mountain Railway Co., Erwin, Tenn., C. A. Smith, G. F. & P. A. 
Cape Fear Railways, Inc., Fort Bragg, N. C, H. A. Page, Jr., Pres. & G. M. 
Carolina Southern Railway Co., Windsor, N. C, C. H. Pruden, Gen'l Supt. 

& Traffic Manager. 



316 N". C. Utilities Commission 

Carolina & Northwestern Railway Co., Atlanta, Ga,, L. P. Hungerford, 

G. F. & P. A. 
Carolina & Tennessee Southern Railway Co., Atlanta, Ga., C. H. Dunn, 

G. F. A. & T. M. 
Cliffside Railroad Company, Cliffside, N. C, Charles H. Haynes, President. 
Carolina, Clinchfield & Ohio Railway, Erwin, Tenn., C. A. Smith, G. F. & P. A. 
Danville & Western Railway Co., Atlanta, Ga., L. P. Hungerford, G. F. & P. A. 
Durham & Southern Railway Co., Charlotte, N. C, W. I. Rankin, T. M. 
East Carolina Railway, Farmville, N. C, W. H. Newell, Jr., Gen'l Mgr. 
East Tenn. & Western N. C. R. R. Co., Johnson City, Tenn., W. W. Whisman, 

Traffic Manager. 
Graham County Railroad Co., Robbinsville, N. C, L. R. Wilson, Secretary. 
High Point, Thomasville & Denton R. R. Co., High Point, N. C, F. J. Flagler, 

G. F. A. 
Laurinburg & Southern Railroad Co., Laurinburg, N. C, G. Y. Jones, T. M. 
Lawndale Railway & Industrial Company, Lawndale, N. C, J. F. Schenck, 

President. 
Linville River Railroad Co., Johnson City, Tenn., W. W. Whisman, T. M. 
Louisville & Nashville Railroad Co., Erwin, Tenn., C. D. Quinn, G. F. A. 
Moore Central Railway Co., Asheboro, N. C, Arthur Ross, Manager. 
Norfolk & Western Railway Co., Roanoke, Va., F. W. Jones, G. F. A. 
Norfolk Southern Railroad Co., Norfolk, Va., C. H. Ware, G. F. A. 
Piedmont & Northern Railway Co., Charlotte, N. C, L. R. Dawson, G. F. 

& P. A. 
Rockingham Railroad Company, Rockingham, N. C, W. H. Newell, Jr., G. M. 
Seaboard Air Line Railway, Norfolk, Va., C. L. Senter, Gen'l Frt. Agent. 
Southern Railway Co., Atlanta, Ga., A. E. Hendee, General Freight Agent. 
State University Railroad Co., Chapel Hill, N. C, C. H. Dunn, G. F. A. &. T. M. 
Tallulah Falls Railway Co., Cornelia, Ga., H. L. Brewer, Receiver & G. M. 
Tennessee & North Carolina Railway Co., Hayesville, N. C, R. S. Arnett, 

Auditor. 
Tuckaseigee & Southeastern Railway Co., East La Port, N. C, Joseph Keys, 

President & General Manager. 
Virginia & Carolina Southern R. R. Co., Lumberton, N. C, J. Q. Beckwith, 

Vice President. 
Warrenton Railroad Co., Warrenton, N. C, D. C. Blalock, Superintendent. 
Wilmington, Brunswick & Southern R. R. Co., Southport, N. C, M. J. 

Corbett, Receiver. 
Winston-Salem Southbound Railway Co., Winston-Salem, N. C, S. P. Collier, 

Traffic Manager. 
Yadkin Raliroad Co., Atlanta, Ga., L, P. Hungerford, General Freight Agent. 
Southern Freight Association, Atlanta, Ga., J. G. Kerr. Chairman. 
High Point, Randleman, Asheboro and Sou. R. R. Co., Atlanta, Ga., L. P. 

Hungerford, General Freight & Passenger Agent. 



Decisions and Adjustments of Complaints 



317 



When 


Rates Will 


When 


Rates Will 


Rate 


Apply Over 


Rate 


Apply Over 


Making 


Routes Not 


Making 


Routes Not 


distance is: 


Exceeding: 


Distance is: 


Exceeding: 


(Miles) 


(Miles) 


(Miles) 


(Miles) 


15 


40 


180 


335 


20 


51 


190 


353 


25 


63 


200 


372 


30 


74 


210 


389 


35 


86 


220 


406 


40 


97 


230 


424 


45 


109 


240 


441 


50 


120 


260 


474 


55 


127 


280 


507 


60 


135 


300 


540 


65 


142 


320 


573 


70 


150 


340 


606 


75 


157 


360 


639 


80 


165 


380 


672 


85 


172 


400 


705 


90 


180 


420 


735 


95 


188 


440 


765 


100 


196 


460 


796 


110 


213 


480 


826 


120 


231 


500 


857 


130 


248 


520 


887 


140 


266 


540 


917 


150 


283 


560 


948 


160 


301 


580 


978 


170 


318 


600 


1,008 



620 



1,039 



Docket No. 1979. 



IN THE MATTER OF GENERAL RELIEF TO CARRIERS BY RAILROAD 
FROM OPERATION OF THE LONG AND SHORT HAUL LAW, C. S. 1072, 
BY CIRCUITOUS OR INDIRECT ROUTES IN CONNECTION WITH 
NORMAL SCALES OR LEVELS OF CLASS AND COMMODITY FREIGHT 
RATES BASED ON DISTANCE OVER LINES OR ROUTES OF THE 
SHORTEST MILEAGE. 

Order 
It Appearing, That the Commissioner on May 13, 1940, made and entered his 
order in the above entitled proceeding, citing all common carriers by rail 
engaged in intrastate commerce within the State of North Carolina to show 
cause by formal return filed on or before July 15, 1940, why order of May 10, 
1915, and orders referred to therein should not be vacated and set aside and 
that there be established in lieu thereof the provisions for general relief from 
C. S. 1072, as set forth in the appendage to the order of May 13, 1940; 

It Further Appearing, That request has been received from an interested 
party to postpone the date for filing such return, and good cause appearing 
therefor : 



318 NT. C. Utilities Commission 

It is Ordered, That the date for filing such return be, and it is hereby, post- 
poned to August 15, 1940. 

This the 27th day of June, 1940. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1979. 

IN THE MATTER OF GENERAL RELIEF TO CARRIERS BY RAILROAD 
FROM OPERATION OF THE LONG AND SHORT HAUL LAW, C. S. 1072, 
BY CIRCUITOUS OR INDIRECT ROUTES IN CONNECTION WITH 
NORMAL SCALES OR LEVELS OF CLASS AND COMMODITY FREIGHT 
RATES BASED ON DISTANCE OVER LINES OR ROUTES OF THE 
SHORTEST MILEAGE. 

Order 
It Appearing, That the Commissioner on May 13, 1940, made and entered 
his order in the above entitled proceeding, citing all common carriers by rail 
engaged in intrastate commerce within the State of North Carolina to show 
cause by formal return filed on or before July 15, 1940, why order of May 10, 
1915, and orders referred to therein should not be vacated and set aside and 
that there be established in lieu thereof the provisions for general relief from 
C. S. 1072, as set forth in the appendage to the order of May 13, 1940; and that 
the date for filing such return was, by order of June 27, 1940, postponed to 
August 15, 1940; and 

It Further Appearing, That a petition has been filed by an interested party 
asking that the date for filing such return be further postponed, and good 
cause appearing therefor: 

It is Ordered, That the date for filing such return is hereby postponed to a 
date later to be fixed. 

This the 23rd day of July, 1940. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1979. 

APPLICATION OF ATLANTIC AND EAST CAROLINA RAILWAY COM- 
PANY FOR PERMISSION TO LEASE THE ATLANTIC AND NORTH 
CAROLINA RAILROAD COMPANY. 

Order 

This is an application of the Atlantic and East Carolina Railway Company 
filed with this Commission by its President, H. P. Edwards, on June 22, 1939, 
for authority to lease and operate the entire railroad of the Atlantic and 
North Carolina Railroad Company, extending generally from Goldsboro, N. C. 
to Morehead City, N. C, a distance of 94 miles. 

A similar application was filed with the Interstate Commerce Commission 
on June 23, 1939, under Finance Docket No. 12456. 



Decisions and Adjustments of Complaints 319 

The applicant, operating no railroad at the present time, was organized and 
incorporated specifically for the purpose of leasing and operating the Atlantic 
and North Carolina Railroad, now controlled by the Government of the 
State of North Carolina. The application includes, as Exhibit I, a resolution 
of the Board of Governors of the Atlantic and North Carolina Railroad Com- 
pany duly adopted by said board, having been presented to the stockholders of 
the Company at a meeting duly called and held in the office of the Attorney 
General of North Carolina, at Raleigh, N. C, on April 20, 1939, which said reso- 
lution being adopted by the stockholders of the Atlantic and North Carolina 
Railroad Company, contains offer of H. P. Edwards, said President of the 
Atlantic and East Carolina Railway Company, hereinafter called lessee, and 
an order that the offer of lessee shall be accepted when and if all of the details 
of same are fully approved by the General Counsel of the Atlantic and North 
Carolina Railroad Company, hereinafter called the lessor, and the Attorney 
General of the State of North Carolina. On motion of the Attorney General, 
representing the State of North Carolina by proxy, seconded by Dr. Cobb and 
unanimously carried, the provision of ballot was waived and a vote by voice 
on resolution to lease the property to H. P. Edwards and Associates, was 
taken, there being 487 votes in the affirmative and 17 in the negative. 

The application also contains the following exhibits: 

Exhibit 

No. Description 

A Map of Lessor. 

B Resolution of Board of Directors of lessee held at Sanford June 20, 
1939, authorizing H. P. Edwards to make application to the 
Interstate Commerce Commission to enter into a lease agreement 
with lessor; and authorizing said H. P. Edwards to act as agent 
for lessee. 

C Certified copy of resolution of the records of lessee adopted June 
20, 1939. 

D Certificate of incorporation of lessee. 

E Lease agreement between lessor and lessee. 

F Income account of lessor for the years ended December 31, 1936, 
and 1937. 

G Income account of lessor for the year ended December 31, 1938, and 
for 4 months ended April 30, 1939. 

H General balance sheet of lessor, dated April 30, 1939. 
J Ballot of stockholders of lessor on resolution to lease property 
to H. P. Edwards and Associates, dated April 20, 1939. 

K Resolution of the Board of Directors, dated April 20, 1939. 

L Letter, dated June 2, 1939, from His Excellency Clyde R. Hoey, 
Governor of the State of North Carolina, addressed to the Inter- 
state Commerce Commission, Washington, D. C. 

M Opinion of Counsel John G. Dawson, concerning the execution and 
performance of the obligation set out in the proposed lease agree- 
ment. 

N Certification of General Counsel of lessor that said lessor was 
chartered by act of the General Assembly of North Carolina, Chap- 
ter 136, Public Laws of North Carolina 1852-1853, and amended 



320 N". C. Utilities Commission 

by Chapter 232 of the Private Laws of North Carolina, Session 
1854-1855, and among other powers granted unto said lessor was 
the express power to farm out and lease its property and fran- 
chises. 
Theoretical General Balance sheet of lessee at beginning of 
business. 

All details of the offer of said H. P. Edwards, President of the Atlantic and 
East Carolina Railway Company, lessee, having been fully approved and ac- 
cepted by the General Counsel for the lessor and the Attorney General of 
the State of North Carolina, and a similar application having been approved 
by the Interstate Commerce Commission as to interstate and foreign com- 
merce, this application of lessee, for authority to lease and operate the Atlan- 
tic and North Carolina Railroad Company is approved, the lease to become 
effective simultaneously with the effective date as authorized by the Inter- 
state Commerce Commission. 

It is Therefore Ordered, That application of Atlantic and East Carolina 
Railway Company filed on June 22, by its President, H. P. Edwards, petition- 
ing for authority to lease the Atlantic and North Carolina Railroad Company 
in so far as North Carolina intrastate commerce is concerned be, and the same 
is, hereby approved. 

This 7th day of August, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1641. 

PETITION OP THE ATLANTIC AND EAST CAROLINA RAILWAY COM- 
PANY FOR AUTHORITY TO SUBSTITUTE CARETAKER IN LIEU OF 
AGENCY SERVICE AT DOVER, N. C. 

Order 
Appearances: 

Applicants: Matt H. Allen, Kinston; and H. P. Edwards, New Bern, N. C. 
Protestants: None. 
In Compliance with Practice Rule 12-A, the following notice was posted in 
the Depot and Post Office at Dover for a period of ten successive days, begin- 
ning with January 30, 1940: 

This is to advise the public that the Atlantic and East Carolina 
Railway Company will make application, ten days after the date of 
this notice, to the North Carolina Utilities Commission to discontinue 
the station agencies at Newport and Dover, North Carolina, and estab- 
lish instead a caretaker who will meet all trains and perform the 
service which has been heretofore performed by an agent, in so far 
as receiving and delivering freight and express is concerned. 

On March 4, 1940, the Atlantic and East Carolina Railway Company, by the 
President and General Manager, H. P. Edwards, filed application for authority 



Decisions and Adjustments of Complaints 321 

to take the action intended as set forth in the notice above quoted. This mat- 
ter was set for hearing before the Commissioner along with an application 
for authority to take similar action at Newport, N. C. The Newport matter will 
be considered and acted upon in a separate report. 

Applican testified that total net revenue at Dover for a period of six 
months beginning September, 1939, and ending February, 1940, was $408.99; 
a monthly average of $68.16, and not sufficient to cover the costs of main- 
taining the present agency status and that the general earnings of the road 
as a whole are unsatisfactory, which condition was attributed to the loss of 
traffic to competing forms of transportation. The applicant further testified to 
the necessity of conserving all revenue possible for the purpose of consummat- 
ing a program of maintenance designed to improve the condition of physical 
properties such as road-bed and tracks. 

It appears that the circumstances relied upon by applicant are sufficient to 
justify permission for the authority sought and the absence of protest from 
shippers and receivers of freight is indicative that any inconvenience result- 
ing from the substitution of a caretaker in lieu of an agent will, in perspective, 
be of little consequence. 

It is Therefore Ordered, That the petition of the Atlantic and East Caro- 
lina Railway Company to discontinue the agency at Dover and substitute a 
caretaker therefor, be, and the same is, hereby granted. 

This 4th day of April, 1940. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 1811. 

PETITION OP THE ATLANTIC AND EAST CAROLINA RAILWAY COM- 
PANY FOR AUTHORITY TO SUBSTITUTE CARETAKER IN LIEU OF 
AGENT AND OF THE WESTERN UNION TELEGRAPH COMPANY TO 
DISCONTINUE COMMERCIAL TELEGRAPH SERVICE AT NEWPORT, 
NORTH CAROLINA. 

Order 
Appearances: 

Applicants: Matt H. Allen, Kinston; and H. P. Edwards, New Bern, 
N. C, for Railway. F. W. Troy, Greensboro, for Telegraph Company. 
Protestants: William H. Bell, Newport, N. C. 

The Atlantic and East Carolina Railway Company, by H. P. Edwards, 
President and General Manager, and the Western Union Telegraph Company, 
by B. G. Dopson, Superintendent; after complying with the Commission's 
Practice Rule 12-A, by posting notices of intention to make changes at New- 
port Depot, filed applications, which on part of the Railway seeks authority to 
substitute a caretaker in lieu of an agent and the Telegraph Company seeks 
to discontinue commercial service. Upon request of prominent Newport mer- 
chants, the applications were docketed and after due notice came on for hear- 
ing in Raleigh at the Commission's Court Room, April 2, 1940. 

21 



322 N". C. Utilities Commission 

In support of the application witness Edwards testified to the generally- 
unsatisfactory condition of the Railway as a whole both as to revenue and the 
substantial condition of the road-bed. The trend of his testimony is persua- 
sive that actual losses must be eliminated and revenues carefully conserved in 
order to carry out a long-term plan for rehabilitating the physical property 
and keeping the railroad in operation. An exhibit was introduced which shows 
applicant's proportion of the gross receipts at its Newport station as $470.72 
for a period of six months, September, 1939, to February, 1940, inclusive, a 
monthly average of $78.47, which compared with the agent's monthly salary 
of $82.00 clearly demonstrates the unprofitable operation of the station; this 
aside from other costs of maintenance. 

Led by Honorable P. E. Dixon, the Mayor, and Mr. William H. Bell, a group 
of prominent Newport citizens appeared to protest the proposed change in the 
status of the station, on the ground that public convenience would be dimin- 
ished. Within the past few years numerous applications have been filed with 
this Commission by carriers operating in all sections of the state seeking 
authority similar to that herein contemplated and invariably such requests are 
based on the diminution of revenue during the depression and a continuing 
diversion of traffic to that medium of carriage both common and private, 
the utility of which has greatly expanded with the development of a fine sys- 
tem of highways. While more labor per unit is required by the motor carrier 
than by the Railroad to produce an equal amount of transportation, there is 
always that unpleasant transitory period of turnover and readjustment. 

The Telegraph Company seeks authority to discontinue commercial service 
in the event the Railroad's petition is granted. The average monthly gross 
receipts are $8.46; considerably insufficient to maintain an independent office. 
Witness Troy testified that messages would be relayed to and from More- 
head City by telephone if the office were closed. 

The Commissioner laments the necessity of any action which might appear 
to be of the slightest inconvenience to the people in vicinage, or the public 
more generally, but the facts cannot be ignored, and upon consideration of the 
evidence as a whole, it is found that the applications of both the Railroad 
Company and the Telegraph Company have been justified subject to the con- 
dition that the caretaker to be substituted by the Railroad in lieu of the 
agent shall reside in close proximity to the station, meet all trains, sell tickets, 
issue bills of lading, collect freight charges, and receive and deliver freight. 

Further, it appears desirable in the interest of patrons at Newport that the 
station be kept open for minimum periods of one hour in the morning 
and one hour in the afternoon in nominal charge of the caretaker who at all 
other time between the hours of 8:00 a.m. and 5:00 p.m. is to be available at 
nearby place of residence for attention to matters incident to the perform- 
ance of transportation service. 

It is Ordered, That applicant, Western Union Telegraph Company, be, and 
it is hereby authorized to discontinue commercial telegraph service at 
Newport. 

It is Further Ordered, That applicant, Atlantic and East Carolina Railway 
Company, be, and the same is hereby authorized to substitute a caretaker 



Decisions and Adjustments of Complaints 323 

in lieu of an agent at its Newport station, subject to the conditions expressed 
in the foregoing opinion. 

This 25th day of April, 1940. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
(SEAL) 
Docket No. 1811. 

DISCONTINUANCE OF PASSENGER SERVICE OVER THE ATLANTIC 
AND YADKIN RAILWAY COMPANY 

Order 
Appearances : 

Col. Frank P. Hobgood, and E. L. Faulconer, Greensboro, for Pe- 

tioner. 
Hon. W. P. Horton, Pittsboro; J. C. Pitman, Sanford; Clyde A. Shreve, 
Stokesdale; J. F. Snow, Mt. Airy; and W. W. Seymour, Sanford, 
for Protestants. 

This Proceeding arises on petition of the Atlantic & Yadkin Railway 
Company for authority to discontinue the operation of all passenger train 
service, a hearing on which was held on September 12, 1938. 

In compliance with the Commission's Rules of Practice, notices were posted 
at each station on July 22, apprising the public of petitioner's intention to 
apply for permission to remove its passenger trains. Many protests, by letters 
and petitions, were filed. 

The Atlantic & Yadkin Railway Company operates wholly within North 
Carolina its line extending from Mt. Airy to Sanford with a branch line run- 
ning from Climax to Ramseur, the total distance of which is 149 miles. 

At the present time petitioner operates two passenger trains, one each 
way daily, between Mt. Airy and Sanford. Its train No. 30 leaves the former 
point at 8:10 a.m. and arrives at Sanford at 1:50 p.m. Returning, train No. 31 
leaves Sanford at 2:15 p.m., and arrives Mt. Airy at 7:30 p.m. Passenger 
service between Climax and Ramseur is provided on its so-called mixed trains 
Nos. 52 and 53, which is also rendered on its main line between Greensboro 
and Climax, leaving the former point at 9:00 a.m. and arriving Ramseur at 
10:45 a.m. Returning, it leaves Ramseur at 11:15 a.m. and arrives Greensboro 
at 12:45 p.m. 

The petition states, and it was reiterated at the hearing, that negotiations 
have been had with the Railway Express Agency, Inc., concerning the handling 
of express by motor trucks to the end that the public will continue to have 
uninterrupted express service, and that this arrangement is assured, provided 
the Express Agency is granted franchise to operate trucks on highways between 
stations on petitioner's line. It is further averred that the mail now handled 
on its main line passenger trains, there being none handled on mixed trains 
between Greensboro and Ramseur, can and will be handled by star routes, a 
large portion of which is now being so handled and satisfactorily. 

The loss of passenger traffic over its lines in recent years, it is contended, is 
due primarily to its diversion to motor busses and privately owned motor 



324 !N". C. Utilities Commission 

vehicles. The operation of passenger trains has been continued with the hope 
that something might transpire to make the operation profitable, but it has 
become apparent that there can be no reasonable expectation of any increase in 
passenger revenue and that the communities adjacent to the line do not 
support it, is also argued. 

In partial support of its contention that passenger traffic has been diverted 
to the highways, petitioner states that its main line is closely paralleled 
by good state roads over which many busses operate, viz. : 5 each way between 
Greensboro and Mt. Airy via Winston-Salem and Rural Hall on approximately 
2^-hour schedules, and between Greensboro and Sanford, viz.: 3 schedules 
each way requiring less than two hours. Because there are no direct connec- 
tions made at Greensboro, with two exceptions, there is no through bus 
service between Mt. Airy and Sanford, and therefore, the time required to 
make the trip between these two points is greater than by petitioner's trains. 
There have been a few passengers who traveled between towns east and west of 
Greensboro. The service offered those few by petitioner was, doubtless, more 
convenient than that provided by motor vehicle carriers. 

Petitioner's total revenues for the years of 1934 to 1937, inclusive, are as 
follows: 

1934 1935 1936 1937 

Ticket Sales $23,298.17 $24,340.61 $25,591.67 $21,280.25 

Excess Baggage.... 52.13 37.64 104.87 358.97 

Mail 14,103.09 14,340.86 14,633.85 14,296.07 

Express 7,096.25 9,328.61 11,064.17 9,976.53 

Other 184.41 60.00 175.60 

Total $44,549.64 $48,232.13 $51,454.56 $46,087.42 

These revenues generally speaking have fluctuated very little; however, 
while there were increases during the years of 1935 and 1936, practically all was 
lost during 1937. 

On the other hand, expenses comprised of locomotive and car repairs and 
depreciation, rent for passenger cars, insurance, stationery and printing, 
tariffs, joint yards and terminals, station labor, enginemen and trainmen, 
fuel, enginehouse, train supplies and injuries to persons, all chargeable to the 
operation of petitioner's passenger trains sought to be discontinued, were as 
follows: 

1934 1935 1936 1937 

$63,357.69 $64,036.56 $68,336.45 $69,121.15 

It is here revealed that the expenses have steadily increased, the operating 
cost during 1937 being $5,763.46 more than in 1934, compared with an increase 
in revenue of $1,537.79 for 1937 over 1934. 

The resultant deficits, therefore, were: 

1934. 1935 1936 1937 

$18,808.05 $15,804.43 $16,881.89 $23,033.73 

For the first six months of the current year, revenues amounted to $17,793.37 
and expenses, $37,433.34, resulting in a deficit of $20,417.72, and which, if 
equated to a yearly basis would hp: revenues. $34,031.24; expenses, $74,866.68; 



Decisions and Adjustments of Complaints 325 

deficit, $40,835.44. It will thus be seen from these figures that the revenues for 
1938 will be approximately $12,000.00 less than for 1937; expenses $5,750.00 
more, with a proportionate increase in the deficit. 

The passenger cars operated in the trains sought to be removed are owned 
by the Southern Railway Company and leased to petitioner. The two coaches 
were built in 1910 and the mail car in 1909. 

Prior to August 16, 1936, cars or trains were operated through to Wilming- 
ton over the Atlantic Coast Line Railroad from Sanford. The connection was 
broken on the above date due to the inauguration by the Atlantic Coast Line 
of air conditioned coaches and its adoption of a policy to accept only cars of 
steel construction, not possessed by petitioner. An insufficiency, of money has 
made it impossible to purchase such equipment or to air condition its leased 
cars, the cost of which is approximately $7,500.00 per coach. It was stated 
that such cars could not be leased from the Southern Railway because that 
line has a shortage for its own use; nor is there any other place from which 
cars of that type could be leased. The use of air conditioned equipment would, 
petitioner advises, increase its operating costs by at least 10 per cent. For the 
Atlantic Coast Line Railroad to run its air conditioned cars through to Mt. 
Airy would cost $15.00 per car per day. 

On cross-examination of petitioner's witness it was developed that the 
Southern Railway Company owns the majority of Atlantic & Yadkin's stock; 
that the lessor, Southern Railway, receives a rental of $2.70 per day per 
passenger car; that there are eleven freight and three passenger locomotives 
on the line, all serviced by the Southern at its Greensboro roundhouse, rang- 
ing from $4.00 to $5.00 per day, including enginehouse expenses; that the 
present coaches leased from Southern Railway in 1930 have no wash-room 
accommodations — have old-fashioned or dry hopper toilets; that this type of 
equipment would cost new about $25,000.00 per car, and a modern car, air 
conditioned, approximately $40,000.00; that the locomotives, including the 
three passenger locomotives owned by petitioner, range in age from 34 to 38 
years; that the train arriving Sanford transfers all eastbound passengers, 
baggage, express, and entire load to the train of the Atlantic Coast Line 
with a wait-over between connections of approximately two hours; that peti- 
tioner's train returns, en route to Mt. Airy, 25 to 30 minutes after its arrival 
at Sanford, being required to turn, transfer and depart; that petitioner keeps 
open 21 out of 24 stations, 8 hours per day, between Mt. Airy and Sanford, 
to accommodate passengers, eleven of which stations are located west of 
Greensboro; that only three of the latter are open at the time the Mt. Airy 
train passes; that Gulf is the only station kept open on Sunday; that peti- 
tioner's cost for use of the Southern Railway passenger station in Greens- 
boro is $500.00 monthly; that petitioner also uses the Sanford station and 
terminals of the Atlantic Coast Line and Seaboard Air Line Railway for which 
it pays on a 50-50 basis — 2y 2 per cent per year on investment and maintains half 
of the yard; that an adjustment of schedules and improvement in service, even 
though it may attract some additional traffic, would not compensate petitioner 
for the added expense necessary to effect it; that on an average trains arriving 
Mt. Airy are 30 minutes late. 

It is not an unusual occurrence that freight out of Sanford is handled 
on the passenger train en route Mt. Airy, causing failure to maintain schedule, 
and necessitating overtime pay to the crew and a greater consumption of fuel. 



326 ]ST. C. Utilities Commission 

The cost to petitioner to perform freight service in passenger trains was 
approximately $10.00. This cost, however, was charged to passenger train 
operation, but the receipts from the freight carried therein was credited to 
freight accounts. It was stated that the freight train leaving behind the passen- 
ger train easily could have handled the cars but to expedite their movement 
they were placed on the passenger train, which, of course, added to the cost 
of operating the passenger train and was accordingly charged. 

At my request petitioner, subsequent to the hearing, furnished a statement 
by months showing number of cars of freight handled on passenger trains, 
revenues received, and additional expense incurred in handling, during the 
period January, 1938, to August, 1938, inclusive. As some of the freight con- 
sisted of merchandise, causing an accounting difficulty, such cars were given 
a maximum estimate of $10.00 each which, petitioner believes, is in excess of 
actual figures. The subjoined table is a recapitulation by months of freight 
cars handled in passenger trains, with revenues received and expenses 
incurred: 



Month 

January. . . . 
February . . 

March 

April 

May 

June 

July 

August 



Number 


Car Miles 


Cars 


Handled 


10 


531 


12 


657 


12 


574 


15 


763 


14 


804 


11 


491 


17 


672 


84 


4,331 





Additional 


Revenue 


Expense 


$ 236.71 


$ 19.85 


365.10 


21.40 


333.86 


20.90 


336.90 


27.76 


389.65 


20.86 


216.50 


15.30 


378 . 05 


21.83 


1,512.41 


135.66 


$ 3,769.18 


% 283 . 56 



Total 175 8,823 

Most of these cars contained fertilizer, fruits and vegetables, merchandise, 
meats, sugar and tobacco, the latter commodity moving in August and 
amounting to 70 cars. Other freight included lumber, furniture, stone, cement, 
brick, talc, feed, canned goods, cotton piece goods, beer, asphalt, soap, plaster, 
bones, hay, tar, steel, and coffee. 

The additional cost incurred in handling these cars amounted to $1.62 per car. 
If this may be considered an average, the additional cost for the year of 
1938 would not exceed $500.00 and this, it is believed, is a liberal estimate. 
Since this cost is included in the expenses of operating passenger trains its 
deduction from the estimated passenger expenses would result in $74,- 
366.68, making the deficit $40,335.44, instead of $40,835.44. 

On the other hand, should this freight revenue be credited to passenger 
train operations, converting $3,769.18 for 8 months to an annual basis of 
$5,653.80 and adding to the estimated revenues for 1938 of $34,031.24, the total 
revenues would be $39,685.04, thus narrowing the deficit from $40,835.44 to 
$35,181.64, which is by far the largest deficit recorded. 

The first witness to testify for protestants was a railway mail clerk who 
resides in Liberty and whose mail run extends from Mt. Airy to Sanford. Ac- 
cording to his official records, which he is required to make, between Septem- 
ber 1 and September 7, train No. 31 arrived in Mt. Airy 333 minutes overtime, 
or 55 plus minutes late each night. Between these two cities approximately 
15,000 letters, 5,000 papers and parcels, and more than 350 sacks of parcel 



Decisions and Adjustments of Complaints 327 

post are handled daily which, if the Railway Post Office service is dispensed 
with, will delay the mail from 24 to 36 hours due to the fact it becomes 
necessary to work all mail at Greensboro, requiring for this amount possibly 
five men one full day. 

Delivery of mail by star route carriers, it was testified, would be delayed 
during the winter season when weather conditions are unfavorable, particu- 
larly between Greensboro and Mt. Airy. The witness stated that he has known 
Stokesdale and that section which has star route service also to fail to receive 
any mail for 30 days, except by train — that during the winter of 1936-1937 the 
hills got so slick no busses or trucks, because of the danger, could go in at all. 
Last winter, said the witness, Germanton and Belew Creek received no mail 
except by train. 

Another witness, residing in Siler City, testified that it is not often that 
these trains pass there on schedule and that at least 60 per cent of the time 
they handle freight. The Chatham Hosiery Mill recently constructed plants at 
Siler City, Liberty, and Ramseur, which would have a tendency to increase 
mail, and freight and passenger service. 

A former Mayor of Stokesdale whose present occupation is farming and 
lives within 300 feet of the station testified that the road between Stokesdale 
and Walnut Cove, via Belew Creek, a distance of about twelve miles, was 
not in very good condition. Aside from an occasional raking, no work has 
been done on it for several years. While practically every family in Stokesdale 
has a private car, the community depends only on the petitioner for public 
service to Greensboro, where quite a number of Stokesdale citizens are em- 
ployed. There is, however, bus service to and from Winston-Salem and Reids- 
ville. It is his opinion that better equipment and a change in schedules would 
double the travel on these trains, although he, himself, seldom uses them. 

Other witnesses from the communities of Stokesdale, Summerfield, etc., 
were tendered as to the public necessity for the continued operation of peti- 
tioner's passenger service as well as to reiterate the general poor conditions 
of the cars; also as to the irregularity in schedules, and as to delays to the 
mail. 

A representative of the North Carolina Granite Corporation, testifying in 
behalf of petitioners, stated that it is his fear that the continued operation 
of these passenger trains, in view of the great loss incurred, will "jeopardize 
freight train service which is not only needed by his Company but manufac- 
turers of furniture, shippers of lumber and receivers of coal as well. There is 
no necessity, he stated, for this passenger service as very few people ride the 
trains. 

The many letters and petitions filed purport to show necessity for the con- 
tinuation of the service. 

In 1931 petitioner sought to discontinue the operation of these passenger 
trains, hearing on the application having been held before the Commission 
on June 23, 1931. Then, as now, the Commission received petitions from points 
along the line protesting the removal of these trains. The Commission, like- 
wise, received numerous requests and letters from business men seeking to 
have the petition granted upon the general grounds this would tend to insure 
continuance of the operation of the line for freight service. 

The Commission in dismissing the petition from the bench, suggested to 
protestants that the Atlantic and Yadkin Railway Company could not be 



328 N". C. Utilities Commission 

expected to continue for an indefinite period the operation of passenger serv- 
ice at a loss of $22,652.00, reported for the year of 1930, and that the public 
served by it might look for abandonment of the passenger service unless it was 
patronized. It was also suggested to petitioner that the question of performing 
this service in a more economical way should be considered, and in that case if 
no improvement was noticeable in income and expenses for the service 
rendered, petitioner might, after the first of the year, request further consid- 
eration. 

On January 8, 1932, petitioner renewed its request stating that the trains 
were not being patronized either as a means of transportation for passengers 
or for express, the latter having decreased more than 50 per cent; and that 
its total deficit for eleven months of 1931 for all operations was in excess of 
$141,000.00. Its deficit from passenger train operations for the entire year of 
1931 was $22,337.73, slightly less than the recorded deficit for the preceding 
year. Petitioner also stated that its management had investigated the feasi- 
bility of placing in operation more economical equipment but that it did 
not have the funds with which to make the change. In its order dated Febru- 
ary 17, 1932 (Docket No. 7059), reported in the 26th Biennial Report, the 
Commission said: 

The Commission is of the opinion, and so finds, that there is no question 
but that the applicant needs some relief, which however it is thought the 
management of the property can supply in the form of less expensive 
equipment and operation. It is also convinced that the commercial and 
agricultural interests along the line of this railroad are entitled to some 
consideration at least as affecting mail and express service, and it, 
therefore, feels it would be unreasonable to allow the entire discontinuance 
of these services without further efforts on the part of the Atlantic and 
Yadkin Railway to "carry on" as a complete common carrier for passen- 
ger, mail and express service as well as a freight line. Moreover, the 
Commission still has faith in the territory served by this line, which line 
of railroad is believed to be a strategical one for the state's commercial 
welfare, particularly when the common carriers by rail in the nation are 
finally consolidated into a limited number of systems. 

The petition was, therefore, denied and dismissed, but the matter was re- 
opened and reheard on June 21, 1932, for the purpose of receiving new evi- 
dence. It was then found (a) that the convenience and necessity of the travel- 
ing public did not require the running of passenger trains on the railroad of 
petitioner, (b) that the petitioner was losing approximately $25,000.00 per 
year in the operation of its passenger trains, exclusive of taxes, maintenance 
or any other expense except that incurred in the actual operation of the 
trains, and (c) that petitioner's losses each year in all its operations were 
heavy. 

"These facts on their face," the Commission said, "demand that we give 
petitioner the relief demanded in the petition but, according to our con- 
struction of the law, we are unable to do so. * * * Section 3481 of the Con- 
solidated Statutes provides that a railroad company shall run at least one 
passenger train in each direction over its road on every day except Sunday." 
The Commission said further, "It appears to us that it is the clear intention of 
the Legislature to compel railroads to give passenger service at least once a day 
to each station on its line." The petition was again denied and dismissed. 



Decisions and Adjustments of Complaints 329 

By H. B. 926, Chapter 528, ratified by the General Assembly on May 15, 
1933, Consolidated Statute No. 3481, was amended by adding at the end 
thereof, the following: 

The Corporation Commission, or its successor, however, shall have and 
it is hereby vested with the power in any case in which the convenience 
and necessity of the traveling public do not require the running of pas- 
senger trains upon its railroad to authorize such railroad company to 
cease the operation of passenger trains as long as the convenience and 
necessity of the traveling public shall not require such operation. 

With the exception of mail revenues, which have increased slightly, ticket 
sales and express revenues are less than for the year of 1930. Expenses for 
the years of 1934 to 1937, inclusive, have been slightly less than for the 
year of 1930, resulting in deficits on an average less than for that year. How- 
ever, expenses thus far this year have greatly increased with a diminution at 
the same time in revenues, which, for the first six months results in a deficit 
of more than $20,000.00. 

Petitioner's road, as hereinbefore mentioned, is paralleled practically its 
entire distance from Mt. Airy to Sanford by good highways and all points, 
except Ararat, Germanton, Belew Creek, Summerfield, and Battle Ground 
have east and west bus service. Stokesdale and Walnut Cove do not have 
east-west bus service but are located on bus lines operating from Winston- 
Salem to Reidsville and Winston-Salem to Roanoke, Va., respectively. None 
of these points, however, are located more than eleven miles from any bus line 
which in this time of many private cars can be reached in less than thirty 
minutes. It is the private car to a great extent that has been instrumental 
in the diversion of much passenger travel from the rails and such, along with 
busses, with more modern equipment and expedient schedules, has caused 
revenues to decrease to the point where it is not possible to operate these 
trains without great loss, to say nothing of purchasing new, or modernizing 
its present, equipment. With the keen competition encountered this short 
railroad, with no feeder carriers and unable to participate in through passen- 
ger travel as do trunk lines, it is obvious from experience during the past eight 
years, that this traffic cannot be recovered regardless of steps that might be 
taken at this time. This, of course, is a problem for the management. The law 
does not vest this Commission with power to interfere therewith and I can 
only exercise my authority in matters concerning regulation. It is suggested, 
however, that the Southern Railway Company, which owns the majority of 
the stock of petitioner, should reduce the station cost at Greensboro, as well 
as its rental charges for the dilapidated equipment leased to the petitioner, 
and the petitioner should insistently demand such reductions of the South- 
ern Railway. It is further suggested that reasonable improvements be made 
in the equipment if it is to be used in the future. 

The condition of this carrier and the probable need of this service by 
the public must now be considered. Relief would have been given in 1932, had 
the Commission had authority to give it. It now has jurisdiction and upon 
further consideration it is clear that the operation of the trains under review 
is a burden on petitioner and that the convenience and necessity of the 
traveling public do not require the running of passenger trains as such between 
Mt. Airy and Sanford. 



330 N. C. Utilities Commission 

Petitioner, therefore, will be authorized to discontinue the operation of 
passenger trains Nos. 30 and 31 between Mt. Airy and Sanford, on or after 
January 1, 1939, provided that its local freight trains are converted to mixed 
freight and passenger trains, to transport also passengers, mail and express. 
It appears that receivers and forwarders of mail and express require rail- 
service and it is, therefore, believed that this arrangement will meet those 
requirements. 

Petitioner likewise will be permitted to discontinue, on or after January 1, 
1939, all passenger service on its mixed trains Nos. 52 and 53 operating 
between Greensboro and Ramseur as the record clearly justifies abandonment 
thereof. 

It is Therefore Ordered, That petition of the Atlantic and Yadkin Railway 
Company for authority to discontinue passenger trains Nos. 30 and 31 
operating between Mt. Airy and Sanford be, and the same is hereby granted, 
provided arrangements are made to render passenger, mail and express service 
on or by its local freight trains, the latter, in the future, to be classed or 
termed mixed freight and passenger trains. 

It is Further Ordered, That the said petition for authority to discontinue 
passenger service in its mixed trains Nos. 52 and 53 beween Greensboro 
and Ramseur be, and the same is, hereby granted. 

It is Further Ordered, That authority herein given shall not become effec- 
tive before January 1, 1939. 

This 10th day of November, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1376. 

DISCONTINUANCE OF PASSENGER SERVICE OVER THE ATLANTIC 
AND YADKIN RAILROAD COMPANY. DOCKET No. 1376 

Order 

Supplemental Order Postponing Effective Date of 
Order Dated November 10, 1938 
Good cause appearing therefor: 

It is Ordered, That the effective date of my order dated November 10, 1938, 
in the above proceeding, now reading "January 1, 1939," be changed to read 
"February 1, 1939." 

This 17th day of December, 1938. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
(SEAL) 

Docket No. 1376. 



Decisions and Adjustments of Complaints 331 

DISCONTINUANCE OF PASSENGER SERVICE OVER THE ATLANTIC 
AND YADKIN RAILWAY COMPANY. DOCKET No. 1376 

Order on Exceptions 

This Cause coming again before the Utilities Commissioner, upon excep- 
tions filed by the petitioner, the Atlantic and Yadkin Railway Company, to 
the former order of the Commissioner rendered in this cause on the tenth 
day of November, 1938, and the Commissioner, following oral argument thereon 
on December 13, 1938, having carefully considered each of the three exceptions 
and exhibit filed therewith, and 

It Appearing, That the United States Post Office Department will not use 
mixed freight and passenger train service authorized and ordered, and the 
Commissioner having been informed that mixed train service will not be 
satisfactory from the standpoint of handling express, and 

It Further Appearing, That the loss by the petitioner of the revenues now 
received from the Post Office Department and from the Express Company, 
which service was the main reason for the continuation of the passenger 
service at all, there being practically no revenue received from passengers, 
no justification can be found for requiring the petitioner to continue the opera- 
tion of passenger trains; 

It is Therefore Ordered, That each and all of the said exceptions be, and the 
same are, hereby granted; 

It is Further Ordered, That the order of November 10, 1938, be amended by 
striking out the words "as such" in the last paragraph on page eleven, making 
said last paragraph read as follows: 

The condition of this carrier and the probable need of this service by 
the public must now be considered. Relief would have been given in 1932, 
had the Commission had authority to give it. It now has jurisdiction and 
upon further consideration it is clear that the operation of the trains 
under review is a burden on petitioner and that the convenience and 
necessity of the traveling public do not require the running of passenger 
trains between Mt. Airy and Sanford. 

It is Further Ordered, That the first paragraph on page twelve of said 
order of November 10, 1938, be changed to read as follows: 

Petitioner, therefore, will be authorized to discontinue the operation of 
passenger trains Nos. 30 and 31 between Mt. Airy and Sanford. 

It is Further Ordered, That the third paragraph on page twelve in said 
order of November 10, 1938, be changed to read as follows: 

It is Therefore Ordered, That petition of the Atlantic and Yadkin 
Railway Company for authority to discontinue passenger trains Nos. 30 
and 31 operating between Mt. Airy and Sanford be, and the same is 
hereby granted. 

It is Further Ordered, That said order of November 10, 1938, as amended, 
in this cause, shall become effective only after the United States Post Office 
Department has made arrangements for handling, distributing and dispatch- 
ing the mails, and the Express Company has made arrangements for the future 
transportation of express traffic and commerce. 

It is Further Ordered, That since the amendments herein ordered so change 
the order of November 10, 1938, that it becomes in effect a new order, it will 



332 1ST. C. Utilities Commission 

be so treated for purposes of an appeal should the protestants desire an appeal, 
and the time for perfecting an appeal shall begin to run from January 13, 
1939. 

This 11th day of January, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
(SEAL) 
Docket No. 1376. 

DISCONTINUANCE OF PASSENGER SERVICE OVER THE ATLANTIC 
AND YADKIN RAILWAY COMPANY 

Order Overruling Exceptions 

This Matter again comes before the Utilities Commission upon Exceptions 
filed by citizens of the towns of Siler City, Sanford, Walnut Cove Battle 
Ground, Summerfield, Oak Ridge, Stokesdale, Belew Creek, Germanton and 
Mount Airy, through attorneys J. L. Moody, J. C. Pittman and Clyde A. 
Shreve to the order of this Commission, dated November 10, 1938, and the 
amended order of January 11, 1939. 

In its order of November 10, 1938, this Commission authorized the Atlantic 
and Yadkin Railway Company to replace its present passenger train service 
by mixed freight and passenger train service. To this order Exceptions were 
filed by the Atlantic & Yadkin Railway Company on November 21, 1938, and 
all parties were notified that they would be heard on said Exceptions on De- 
cember 13, 1938, and on said date said Exceptions were discussed and argu- 
ments made by both attorneys for the petitioner and attorneys for the protes- 
tants. 

On January 11, 1939, this Commission made an order allowing the Excep- 
tions, which had the effect of amending its original order of November 10, 
1938, by allowing the discontinuance of passenger train service entirely. 

To this order allowing the petitioner's Exceptions and amending its former 
order, the protestants have this day, January 19, 1939, filed the Exceptions now 
being passed on herein. 

Upon consideration of each and all of the eight Exceptions this day filed 
by the protestants, 

It is Ordered, that each and all of said Exceptions are hereby overruled, 
disallowed and denied. 

This the 19th day of January, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

Docket No. 1376. 

DISCONTINUANCE OF PASSENGER SERVICE OVER THE ATLANTIC 
AND YADKIN RAILWAY COMPANY 

Ruling on Motion 
This Matter again comes before the Commission upon motion by J. L. 
Moody, Attorney for protesting citizens from the Town of Siler City; J. C. 
Pittman, Attorney representing protesting citizens from the Town of San- 



Decisions and Adjustments of Complaints 333 

ford, and Clyde A. Shreve, Attorney representing protesting citizens of the 
towns of Walnut Cove, Battle Ground, Summerfield, Oak Ridge, Stokesdale, 
Belew Creek, Germanton and Mount Airy, filed January 25, 1939, asking that 
the order of this Commission of January 11, 1939, be stayed pending the final 
determination by the courts. 

On January 11, 1939, final order was issued by this Commission authorizing 
the discontinuance of passenger train service by the Atlantic and Yadkin 
Railway Company between Sanford and Mount Airy, effective when arrange- 
ments were made by the United States Post Office Department for the trans- 
mission of mail between the points involved, and when the Railway Express 
Agency had made arrangements for the transportation of express between 
said points. 

On the 21st day of January, 1939, the protestants hereinbefore named served 
on this Commission Notice of Appeal from the orders of this Commission of 
November 10, 1938, and January 11, 1939, to the Superior Court. 

An appeal having been taken from the orders of this Commission to the 
Superior Court, the case is now for all purposes of motions in the Superior 
Court and any move to stay the orders of this Commission heretofore made, 
from which an appeal has been taken, should be made in the Superior Court. 

Wherefore, the motion of January 25, 1939, asking that the orders of this 
Commission be stayed is hereby dismissed. 

This the 26th day of January, 1939. 

Stanley Winborne, 
Utilities Commissioner. 

(SEAL) 

Docket No. 1376. 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY TO 
DISCONTINUE THE AGENCY AT LUMBER BRIDGE, N. C. 

Order 
Appearances : 

Applicant: 0. H. Page, Savannah, Ga., for Atlantic Coast Line Rail- 
road Co. 
Protestants: Geo. T. Deans, Town of Lumber Bridge, Lumberton, 
N. C, and R. T. Johnson, Hassell, N. C, for Order of Railroad 
Telegraphers. 

After complying with Practice Rule 12-A, by posting notice of intention to 
petition this Commission for permission to reduce the status of Lumber 
Bridge, N. C, from an agency to a non-agency station, the applicant's ensu- 
ing petition for the authority desired was filed on November 8, 1939, and 
upon request of protestants, a hearing was docketed and held before the Com- 
missioner at his office in Raleigh, on January 11, 1940, with appearances as 
above noted. 

In justification of the desire to discontinue the agency, the application is 
based on declining revenues, and testimony as follows was introduced showing 
that the earnings at this station over a representative period of time indicate 
a substantial deficit: 



334 N". C. Utilities Commission 

Per Cent 

ACL net freight earnings 1937-38 (Sept.-Aug.) $1,845.01 

ACL net freight earnings 1938-39 (Sept.-Aug.) 986.34 



Decrease $ 858.67 — 46.50 

ACL gross ticket sales and miscellaneous earnings 1937-38..$ 282.25 
ACL gross ticket sales and miscellaneous earnings 1938-39.. 166.15 



Decrease $ 116.10 — 41.17 

Gross earnings, Sept., Oct., Nov., 1938 $ 938.87 

Gross earnings, Sept., Oct., Nov., 1939 167.14 

Decrease $ 771.73 — 82.20 

Salary of agent-operator $ 141.44 

Average monthly freight and passenger earnings 1938-39.... 96.05 

Loss $ 45.39 

Salary of agent-operator $ 141.44 

Average freight earnings (Sept., Oct., Nov., 1939) 55.71 



Loss $ 85.73 

Other than ticket sales, miscellaneous earnings and the three months' 
extra-fiscal period of September, October, and November, these figures quoted 
from the record represent net earnings or that proportion of interline revenue 
accruing to the carrier performing the originating or delivering service. 
Accountancy involving the division and distribution of interline revenue 
does not ordinarily come within the scope of the duties of a local agent; nor 
are such figures recorded in his office. Gross earnings are not determinative of 
the issue here presented and the testimony of witness Holman appearing under 
subpoena issued at the instance of protestant, Order of Railroad Telegraphers, 
lends credibility to applicant's evidence to the extent that the total amount of 
gross revenue submitted by applicant for the comparative extra-fiscal three 
months' period showing rate of diminution, is identical with witness Holman's 
evidence for the same period. 

In addition to Mr. J. C. Holman, Agent of the Atlantic Coast Line Railroad at 
Lumber Bridge, other prominent citizens, merchants and farmers, including 
Honorable C. J. Ammons, the Mayor, appeared and testified to the desirability 
of maintaining the agency. It is not the wish of this Commission to reclassify 
any station from an agency to a prepay status, even in the face of testimony 
here adduced that not more than 25 or 30 minutes per day of the agent's time 
is required in the performance of his duties and the agent's own statement 
that reasonably satisfactory service could be given without an agent. While 
the evidence is persuasive that traffic formerly handled by the railroad is now 
transported by motor carrier utilizing perhaps more labor per unit than the 



Decisions and Adjustments of Complaints 335 

rail medium of carriage, the convenience of the people in the immediate 
vicinity of the railroad station is lessened and it is with great reluctance 
that orders are entered which incommode them, no matter how little, even 
though the railroad service in addition to motor carriage remains available. 
However, these things must be decided on their merits and the facts cannot be 
ignored. 

Upon promise of protestants at the close of the hearing to increase the vol- 
ume of traffic at the Lumber Bridge station to the extent of placing that 
station on a self-sustaining basis, this matter was held open with the result 
that for the period following this arrangement the gross revenue increased 
considerably, but has again sharply declined during the past few months. 

It is Therefore Ordered, That application of the Atlantic Coast Line Rail- 
road to discontinue its agency at Lumber Bridge, N. C, be, and the same is, 
hereby granted, effective on and after October 1, 1940. 

This 10th day of September, 1940. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 1742. 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY TO 
DISCONTINUE AGENCY AT McPARLAN, N. C, AND MAKE SAME A 
PREPAY STATION. 

Order 

By Our Order dated July 26, 1935, reported in First Report of the Utilities 
Commission for the Biennial Period 1935-1936, at page 195, action on the 
original application which was heard on July 16, 1935, was deferred for a 
period of 6 months in order that another opportunity may be given to the 
McFarlan shippers and receivers of freight to increase applicant's reve- 
nues which would justify the continuance of the agency, and further that 
an opportunity be afforded to determine whether the faith of the public in 
the possibility of a definite recovery in the business of the agency was well 
founded, the decision was indefinitely postponed. 

Instead of business and revenues improving at and through the McFarlan 
Agency, there has been a sharp decline therein since 1935. The total of all 
revenues for the 12 months' period ended June, 1935, amounted to $5,317.30 
as compared with the reduced revenues of $1,324.08 for a period of 12 
months ended August 31, 1938, a reduction of nearly $4,000.00. This may be 
compared with revenues of $1,319.25 for a period of only 6 months from June 
to November, 1935, inclusive. 

The latest statement submitted which covers a 12 months' period ended 
August 31, 1938, excluding ticket sales of $48.50 and miscellaneous receipts of 
$15.59, is shown below by months: 



336 



"N. C. Utilities Commission 



FORWARDED 



RECEIVED 



Carload Less Carload Carload Less Carload 



September, 1937 $108.68 

October, 1937 117.62 

November, 1937 

December, 1937 42 . 48 

January, 1938 36.01 

February, 1938 43.15 

March, 1938 40.21 

April, 1938 

May, 1938 

June, 1938 

July, 1938 

August, 1938 34.00 



$422.15 



$ 8.52 



66.61 



292.54 

305.39 

13.09 

21.47 



$699.10 



$ 



14.78 

5.10 

10.80 

5.63 

10.19 

12.44 

11.13 

9.04 

23.84 

11.49 

7.91 

7.87 



$130.22 



Much stress has been given by protestants to the movement of peaches. 
The above statement reveals, however, that no peaches, in carload quantities, 
moved from McFarlan Agency during the months of April to July, inclusive. 
Moreover, it appears that applicant's revenues have fallen to the point that 
protestants can no longer contend for the continuation of the agency as a 
collect or open station. Applicant will, therefore, be permitted to close same 
and make it a prepay point with the understanding that should there be a 
substantial increase in business done at McFarlan the station will be reopened. 

It is Therefore Ordered, That Application of the Atlantic Coast Line 
Railroad Company for authority to discontinue its agency at McFarlan and 
make same a prepay station, be, and the same is, hereby approved, effective on 
or after January 1, 1939. 

This 8th day of December, 1938. 

Stanley Winrorne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

(SEAL) 

Docket No. 366. 



APPLICATION OF ATLANTIC COAST LINE RAILROAD CO. FOR DISCON- 
TINUANCE OF AGENCY AT WATHA, EXCEPT DURING PERISHABLE 
SEASON. 

Order 
Appearances: 

Murray Allen, Raleigh, N. C, for Atlantic Coast Line Railroad 

Company, applicant; 
Bunn and Arendell, Raleigh, N. C, for citizens of Watha, and R. T. 
Johnson, Hassell, N. C, for Order of Railroad Telegraphers, prot- 
estants. 

Prior to the filing of its application on January 30, 1939, petitioning for 
authority to close its agency at Watha, in Pender County, except during 
the perishable season, the Atlantic Coast Line Railroad Company, applicant, 
informed the Commissioner of its compliance with Rule 12-A of our Rules of 
Practice and Procedure. 



Decisions and Adjustments of Complaints 337 

Hearing was held in Raleigh on February 27, 1939. 

Watha is located between Willard and Burgaw, 2% miles from the first 
point and 7 miles from the latter. Both Willard and Burgaw are open agency- 
telegraph offices. 

The population of Watha is approximately 200. There are four general mer- 
chandise stores within the town. The principal outbound commodity handled 
from the station is cucumbers. Very little freight is handled inbound. 

Applicant's freight revenues at Watha for two years ended October 31, 1939, 
were as follows: 

FORWARDED RECEIVED TOTAL 

Carload Less Carload Carload Less Carload 

1937 $3,658.54 $14.15 $3,009.18 $285.10 $6,966.97 

1938 1,540.97 14.03 1,328.48 412.20 2,883.48 

There was considerable carload freight forwarded from Watha during the 
period of November, 1936, to October, 1937, both inclusive, which was due prin- 
cipally to a movement of lumber for account of the Georgia Hardwood Lumber 
Company. This Company transferred its operations to Tabor City. The dis- 
continuance of that company's operations accounts for the more than fifty per 
cent decline in business for the second twelve-month period, in eight months 
of which there was no carload freight forwarded. There was, however, an 
increase of $127.10 in less than carload freight received. For the period ended 
October 31, 1937, revenue from carload freight received, with no movements in 
three months, amounted to $3,009.18, the majority of which accrued in May 
and July. For the next period, revenue from carload freight received with no 
movements in six months, amounted to $916.28, a decline of $2,092.90. 

Additional revenue statistics for the months of November, 1938, through 
April, 1939, representing gross receipts, have been made available and for 
comparison with other periods are shown below: 

1937 1938 1939 

November $464 .12 $ 59 . 09 

December 208.00 59.17 

January 567.11 163.75 $71.59 

February 270.18 145.72 34.08 

March 420.27 66.17 24.92 

April 347.59 11.81 79.64 

The principal outbound freight consists of cucumbers which begins to move 
in May and continues into July of each year. Other fruits and vegetables are 
grown in the Watha section, but on a much smaller scale, some of which is 
sent to the auctions on each side of Watha, 

The salary of the agent is $85.20 a month to which is added expenses amount- 
ing to $5.00 or $6.00 a month, the latter covering station supplies, etc. 

Protestants oppose the closing of Watha Agency, not because of the busi- 
ness handled to and from the town proper, as appears from the evidence, 
but because of the likelihood that the Penderlea development, a Government 
project, extending into the Town of Watha, will be instrumental in substan- 
tially increasing applicant's earnings at that point. 

The center of Penderlea, according to the evidence, is slightly less than four 
miles to Watha by a new road said to be under construction; slightly more 

22 



338 N". C. Utilities Commission 

than five miles to Willard, and seven miles to Burgaw, the latter two points 
being served by good highways. There are 194 homes in Penderlea, 149 of 
which are occupied, and current plans call for the construction of 104 additional 
units. The present population is 900. Farming is the principal occupation in 
the development; however, a silk mill, to employ 180 persons, has now been 
constructed and it is the belief of protestants that because of the shorter dis- 
tance to the Watha station a considerable portion of outbound commerce 
will move from that station over applicant's line. It appears, nevertheless, that 
most tonnage has been moving by motor vehicle carriers even though Watha 
is more than three miles by dirt road to a hard surface highway. 

At the time of the hearing on the application, reference was made to a 
sixty-foot highway then under construction and which would be completed 
within sixty days from that time. As the record is confusing on this point, we 
consulted the Engineering Division of the North Carolina State Highway and 
Public Works Commission and learned that it has no record of the construc- 
tion of a sixty-foot highway between Penderlea and Watha. We are informed, 
however, that there is now being graded, with prison labor, a county road 
between these two communities, which road heretofore was unimproved. 

According to the highway map of Pender County, the distance from the center 
of Penderlea to Watha is 4.9 miles and to Willard, 5 miles, being only one- 
tenth of a mile nearer Watha. While the record is indefinite concerning the 
use of the Watha station as a shipping point for Penderlea produce and manu- 
factures, it is contended that Watha is the logical point. 

Ticket sales for the years ended October 31, 1937, and October 31, 1938, 
amounted to $610.27 and $407.37, respectively, of which $517.42 and $376.12, 
respectively, accrued solely to applicant. In the first year 1,088 passengers and 
in the second year 956 passengers used applicant's passenger trains from 
Watha. The record does not disclose what number board the trains passing 
before and after the office closed; nor the number of persons who had to flag 
the trains not scheduled to stop at Watha. The closing of the station will not 
inconvenience passengers who in future would purchase their tickets from the 
train conductor without any additional charge. 

As there is no definite assurance that business conditions will improve 
at the Watha station, and as the amount of business handled there is very 
small, except during the perishable season, it is the opinion of the Commis- 
sioner that applicant has justified its application to close its agency at 
Watha, except during the perishable shipping season. In granting the appli- 
cation, however, it is to be understood that the Commissioner retains com- 
plete jurisdiction and reserves the right to reopen the station should it be 
required by public convenience and necessity. 

It is Therefore Ordered, That Application of the Atlantic Coast Line Rail- 
road Company, petitioning for authority to close its station at Watha, except 
during the perishable shipping season, and make it a prepay station, be, and 
the same is, hereby granted; 

It is Further Ordered, That the authority hereby given shall not become 
effective until after the 1939 perishable shipping season; and 

It is Further Ordered, That applicant notify the Commissioner of the date 
the office is closed following the current perishable shipping season, and that 



Decisions and Adjustments of Complaints 339 

in subsequent years the Commissioner be notified of the dates the station is 
opened and closed prior to and after the perishable shipping seasons. 
This 14th day of June, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
(SEAL) 
Docket No. 1498. 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY FOR 
AUTHORITY TO DISCONTINUE PASSENGER TRAIN SERVICE (SUN- 
DAYS ONLY) BETWEEN WILMINGTON AND SANFORD. 

Order 

Appearances: 

Murray Allen, Raleigh, for Applicant. 

J. C. Pittman, Sanford, for Town of Sanford, and Clifton L. Moore, 
Burgaw, for Citizens of Atkinson, Protestants. 
The above application was filed in this office on June 23, 1938. Prior to its 
filing applicant posted notices at the stations served by these trains of its 
intention to ask for permission to discontinue handling passengers on Sun- 
days between Wilmington and Sanford, being in compliance with Rule 12-A 
of Rules of Practice and Procedure. 

Prior to the hearing on this application petitions were received from per- 
sons favoring the discontinuance of Sunday passenger service between these 
points as well as from persons opposing it. 

The following statement shows result of operation of these trains (Nos. 57 
and 56), Sundays only, for the year ended April 30, 1938. 

Cents per 
Amount Train Mile 

Total Operating Expenses $9,245.02 74.70 

Total Passenger and Mail Revenue 4,839.27 39.10 

Direct Loss $4,405.75 35.60 

Fixed Charges (Interest and Depreciation) 807.72 6.53 

$5,213.47 42.13 
Total Indirect Operating Expenses 3,777.16 30.52 

Total Loss $8,990.63 72.65 

From the foregoing it is shown that revenues from passengers and mail 
amount to little more than half of the direct operating expenses. By consider- 
ing the fixed charges and indirect operating expenses, the revenues amount to 
only one-third of all expenses required to render this service. 

These figures do not include any revenues from express. Applicant states 
that it has no data which will enable it to allocate its express revenue to 
individual trains. Revenues from the transportation of express are collected 



340 1ST. C. Utilities Commission 

by the Railway Express Agency. After deducting the costs of the latter's oper- 
ation the net return is distributed to the participating carriers. 

For the purpose of accounting for revenues and expenses the roads of the 
country are divided into four separate groups, viz: Eastern, Southern, West- 
ern, and Mountain-Pacific. For each group the total cost of operation is de- 
ducted from the total charges for the transportation of express, excluding 85 
per cent of the gross revenues accruing from rail haul on carload express. The 
amount remaining is distributed among the several carriers of the group in 
the proportion that the gross express transportation revenues on other than 
carload business bears to the gross transportation revenues on other than 
carload business earned on the lines of all carriers in the group. 

The total express revenue of the Atlantic Coast Line Railroad for the year 
of 1937 was $1,478,977. The mileage made by cars for the year 1937 in the two 
groups reported to the Interstate Commerce Commission, which include all 
cars handling express, was as follows: 

Car Mileage 
Mail, express and baggage cars, and combination cars, 

other than passenger 23,903,976 

Combination passenger cars (mail, express or baggage 

with passenger ) 1,836,895 

Total 25,740,871 

For the year of 1937 the average express revenue per car-mile for the cars 
included in the two groups previously mentioned, was 5.75 cents. 

The bulk of express on applicants' line is handled on its main line trains. 
During certain seasons of the year many solid trains of express are operated 
over the main lines. The witness for applicant testifies that it is obvious that 
the average express revenue accruing to the light branch trains is only a 
fraction of the average express revenue of 5.75 cents per car mile. It is con- 
tended that the addition of express on these Sunday trains would make only 
a negligible addition in the amount of loss sustained, and that there would be 
practically no difference in the figures. 

Citizens in the Town of Atkinson protested chiefly from the standpoint of 
express service in connection with the blueberry industry. They contend, by 
way of cross-examination, that during the season it is possible to reach the 
New York Market on Monday morning by shipping the berries from Atkinson 
in express service on Sunday. There is nothing in the record, however, which 
would show the extent of these movements, as protestants did not introduce 
any direct testimony in opposition to the abandonment, but protests were 
indicated by cross-examination. It appears that while some express is shipped 
by applicant's line from Atkinson, other shipments are transported by truck 
to Burgaw for movement by rail to the market. 

While there is bus service between Sanford and Wilmington it only parallels 
a portion of applicant's line, from Sanford to Roseboro. From Roseboro to 
Wilmington there appears to be no public service touching the towns inter- 
mediate thereto. It would be necessary for Atkinson passengers to go to 
Burgaw, approximately 15 miles, or over fourth the distance from Roseboro to 
Wilmington. Witness for applicant stated that the bus operators would use the 



Decisions and Adjustments of Complaints 341 

highway, approximately 5 miles from Atkinson, if there was sufficient patron- 
age to justify it, but such is not the case. 

There are three agency stations between Roseboro and Wilmington, namely: 
Garland, Ivanhoe, and Atkinson. Those previously closed for lack of patronage, 
are Montague, Currie, Tomahawk, Kerr, and Parkersburg. The people in that 
section, it was testified, are not using applicant's facilities but on the contrary 
are using private automobiles. 

Likewise, the Town of Sanford appeared in opposition to the discontinuance 
of these trains. It was testified that the total passenger revenue out of San- 
ford amounts to only $3.69 per Sunday; out of Jonesboro, the station next to 
Sanford, 25 cents per Sunday; or Sanford to Fayetteville, 36 miles, only $4.61 
per Sunday. 

At the hearing, applicant was requested to furnish a statement of earnings 
and expenses for trains 56 and 57 for week days only, for the purpose of 
making comparisons with similar information attached to application covering 
Sunday operations, copies of which were served on counsel for protestants. 

As compared with those hereinbefore given for Sunday, this statement is as 
follows: 

Cents Per 
Amount Train Mile 

Total Direct Operating Expenses $55,665.23 74.72 

Total Passenger and Mail Revenues 25,976.02 34.87 

Direct Loss $29,689.21 39.85 

Fixed Charges (Interest and Depreciation) 4,846.33 6.51 

$34,535.54 46.36 
Total Indirect Operating Expenses 22,735.58 30.52 

Total Loss $57,271.12 76.88 

This reveals that passenger and mail revenues, contrary to those shown for 
Sunday operations, amount to less than half of the direct operating expenses 
and the total loss per train-mile of 76.88 cents being greater than the loss from 
Sunday operations. Counsel for the Town of Sanford suggested, therefore, that 
these trains be continued because it was his opinion that applicant later 
would request discontinuance of week day services and that the entire matter 
could be considered at one and the same time, indicating further that "if the 
road is not making money and is not a public necessity, then in fairness to the 
railroad the question of removing the train entirely should be considered 
instead of doing the job in instalments." 

There may be merit in this contention but the question before the Commis- 
sion involves only Sunday service and it is only this to be decided. It was 
stated by applicant that while it was unquestionably losing money on its week- 
day operations, it was thought the discontinuance of Sunday service would less 
inconvenience the public, and lessen the loss. Moreover, it was stated that its 
revenues from handling Sunday mail was less than that accruing on week- 
days, a difference of approximately $30 per day. 

In the instant case the direct operating expenses are much greater than 
revenues and in determining whether these operations are unprofitable it is 



342 N. C. Utilities Commission 

unnecessary to give any consideration to indirect expenses and losses. It is 
obvious that the remaining patrons will be much less inconvenienced by their 
discontinuance than will applicant, due to its financial condition, from an 
operating standpoint, if required to continue the Sunday service. While it is 
not intended to infer that the Atlantic Coast Line may have been justified in 
seeking abandonment of all passenger service between Sanford and Wilming- 
ton, it is proposed to continue to give the public service for six days in each 
week and only asking to take off service only one day in each week. 

Contrary to the views and opinion herein expressed, it is not the wish of this 
Commission to take from the public the service it has enjoyed for many years. 
It would like to see the service and facilities, not only continued, but improved 
and this always has been foremost in the minds of most of the railroads. While 
coach fares were increased last year from iy 2 cents per mile to 2 cents per 
mile, it enabled the railroads to improve their facilities by way of air-con- 
ditioning hundreds of their cars and in many instances, replacing obsolete 
coaches with lighter equipment. This particular branch line now has air-cooled 
cars which improvement alone cost $8,000 per coach, and which action may be 
considered as an effort to recoup from other means of transporting passengers 
which applicant at one time transported, but it has been done without results. 
Private automobiles have been the rail carriers' largest competitors and it is 
not believed that tightening of and more frequent schedules will be beneficial 
to applicant. Certainly the latter would prove more expensive considering 
revenues that would accrue therefrom. Neither can applicant be expected to 
expend the necessarily large sum required when it has been shown from past 
actions and performances that the public seldom uses the facilities. 

North Carolina now consists of a net work of excellent highways over which 
thousands of motor vehicle carriers, freight and passenger, operate. These 
have obtained a permanent place in the transportation field and taken from 
the railroad its short haul traffic. Only a very small percentage of the public 
now use the rail for the remaining short haul business and this is not sufficient 
to require the continuance of these trains as being in the interest of the public 
as a whole. 

The record supports an order in behalf of applicant, as public necessity and 
convenience are not shown as requiring the future operation of Sunday 
passenger train service between Wilmington and Sanford. 

It is Therefore Ordered, That Application of the Atlantic Coast Line Rail- 
road Company for authority to discontinue passenger service, Sundays only, 
between Wilmington and Sanford be, and the same is, hereby approved, 
effective on or after December 1, 1938. 

This 10th day of November, 1938. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1340. 



Decisions and Adjustments of Complaints 343 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY FOR 

AUTHORITY TO DISCONTINUE PASSENGER TRAINS NOS. 32, 33, 34 

AND 35 BETWEEN WASHINGTON AND PARMELE. 
APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY FOR 

AUTHORITY TO DISCONTINUE PASSENGER TRAINS NOS. 36 and 47 

BETWEEN PLYMOUTH AND TARBORO. 
APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY TO 

DISCONTINUE PASSENGER TRAINS NOS. 38 AND 39 BETWEEN 

KINSTON AND WELDON. 

Order 

These applications were filed on the 23rd day of June, 1938, following 
posting of notices as required by Rule 12-A of the Rules of Practice and 
Procedure. Public hearings were held. It has been made to appear to the 
Utilities Commissioner that a proposal of the settlement and adjustment of 
the matters in dispute was on June 6, 1939, submitted to a meeting of the 
Committee representing the towns on the lines of the Weldon-Kinston 
Branch, the Parmele-Washington Branch, and the Tarboro-Plymouth Branch 
of the Atlantic Coast Line Railroad Company at Greenville, N. C, and the 
settlement in accordance with the order hereinafter set forth was accepted at 
said meeting, and Guy Elliott, Esq., was given authority to represent the 
interested parties, except the Atlantic Coast Line Railroad Company, and to 
consent to this order, and it further being made to appear to the Utilities Com- 
missioner that the Atlantic Coast Line Railroad Company, through its 
counsel, Murray Allen, Esq., consents to this order: 

It is, therefore, ordered: 

(1) That an air-conditioned train shall be provided to leave Kinston at 
9:30 o'clock a.m., and arrive in Rocky Mount approximately two and one-half 
hours later, the same train to return to Kinston about 6:45 o'clock p.m. 

(2) That the passenger service between Washington and Parmele shall 
remain as it is, except that there shall be no passenger service provided on 
Sunday. 

(3) That trains 36 and 37, operating between Tarboro and Plymouth may be 
removed. 

(4) That trains 38 and 39 between Parmele and Weldon may be removed. 

It is Further Ordered, That this order shall not be effective unless and 
until arrangements satisfactory to the Utilities Commissioner shall have been 
made with respect to handling mail and express on the lines on which the 
removal of trains is authorized by this order. 

This 12th day of June, 1939. 

(S) Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

(S) R. O. Self, Chief Clerk. 
Consent: 

(S) Guy Elliott, Attorney for Committee representing the 
towns on the Weldon-Kinston Branch, Parmele-Wash- 



344 ]NT. C. Utilities Commission 

ington Branch and Tarooro-Plymouth Branch of the 
Atlantic Coast Line Railroad Company. 

(S) Murray Allen, Attorney for Atlantic Coast Line Rail- 
road Company. 
Dockets Nos. 1341, 1342 and 1343. 

DISCONTINUANCE OF PASSENGER TRAIN SERVICE BY HIGH POINT, 
RANDLEMAN, ASHEBORO, AND SOUTHERN RAILROAD COMPANY. 

Order 

Appearance: H. E. Powers, Raleigh, N. C, for applicant. 

By application filed with the Commissioner on October 30, 1939, the High 
Point, Randleman, Asheboro, and Southern Railroad Company petitioned for 
authority to discontinue its passenger train service from High Point to Ashe- 
boro via Randleman. Hearing was held in Raleigh on November 10, 1939, with 
no protestants appearing. 

Notices were posted at the stations of High Point, Trinity, Asheboro, and 
Randleman on October 13, 1939, in compliance with Rule 12-A of our Rules of 
Practice and Procedure, which notices remained posted for a period of ten 
days, apprising the public of intention of applicant to apply to the Commis- 
sioner for authority to discontinue this service. 

Passenger service is rendered daily, except Sunday, by applicant between 
High Point and Asheboro via Randleman, a distance of 28 miles, by means of a 
coach operated on the rear end of its freight train scheduled to leave High 
Point at 9:30 a.m. and to arrive in Asheboro at 11:00 a.m., which returns at 
2:00 p.m. to arrive at High Point at 3:25 p.m. 

Applicant contends that it has for a number of years failed to earn oper- 
ating expenses in the operation of its road, and that unless some relief is 
afforded, it will be necessary for the management to curtail some of its pres- 
ent expenses in the handling of freight which will be detrimental to the 
freight service. This action is opposed by shippers and receivers of freight 
who believe that freight service is far more important than rail passenger 
service. 

During 1937, applicant handled 2,969 passengers with revenue accruing 
therefrom in the amount of $555.54. In 1938, 1,721 passengers, with revenue 
of $379.03, and for the first eight months of 1939, 963 passengers were handled 
with revenue of $188.44. The majority of these passengers traveled between 
Randleman and Asheboro, a distance of 8.8 miles. The general expenses in 
handling the passenger coach on applicant's freight train amounts to 
$3,176.88, which for a year is considerably more than revenues. 

The line of the High Point, Randleman, Asheboro, and Southern Railroad is 
paralleled by good highways over which bus companies operate frequent 
schedules. A number of letters from business people at Randleman and Ashe- 
boro were offered in the record by applicant which indicate that the discon- 
tinuance of applicant's passenger service will not inconvenience the traveling 
public for the reason that there is now available ample bus service to accom- 
modate all passenger travel. 

It is the opinion of the Commissioner that public convenience and necessity 
no longer require the rendition of passenger service by applicant between 



Decisions and Adjustments of Complaints 345 

High Point and Asheboro via Randleman, and that the application should be 
granted. 

It is Therefore Ordered, That the High Point, Randleman, Asheboro, and 
Southern Railroad Company be, and it is hereby authorized, to discontinue its 
passenger service between High Point and Asheboro via Randleman, on or 
after December 1, 1939. 

This the 15th day of November, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. O. Self, Chief Clerk. 
Docket No. 1733. 

IN THE MATTER OP PASSENGER FARES OF THE NORFOLK AND 
WESTERN RAILWAY COMPANY 

Order 

Upon consideration of petition of Agent C. L. Hunter filed on behalf of the 
Norfolk and Western Railway Company for authority to continue to maintain 
until and including March 24, 1940, the 2.5 cents per mile one-way coach fare 
level granted by the Commissioner's order of July 23, 1938, to expire eighteen 
months from the effective date thereof on July 25, 1938, and to maintain until 
and including March 24, 1940, the reduced one-way fares for upper berth pas- 
sengers and reduced round-trip fares in coaches, in upper berths and in other 
classes of sleeping or parlor car accommodations which were instituted 
effective June 30, 1939, or subsequent thereto, and scheduled to expire with 
January 24, 1940; 

It is Ordered, That our order of July 23, 1938, be modified and that petitioner, 
Agent C. L. Hunter, be, and he is hereby, authorized to extend until March 24, 
1940, the present applicable passenger fares outlined and described in the 
petition. 

This 29th day of December, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1353. 

APPLICATION OF SEABOARD AIR LINE RAILWAY COMPANY (L. R. 
POWELL, JR., AND HENRY W. ANDERSON, RECEIVERS), FOR AU- 
THORITY TO DISCONTINUE THE STATION OF THELMA, N. C, AS A 
FLAG-STOP FOR PASSENGER TRAINS NOS. 17 AND 18. 

Appearances: 

Applicant: Murray Allen, Raleigh, N. C. 
Protestant: None. 
Applicant, Seaboard Air Line Railroad Company (L. R. Powell, Jr., and 
Henry W. Anderson, Receivers), after posting notice of intention to apply for 
authority to discontinue the station of Thelma, N. C. as a flag-stop for pas- 
senger trains Nos. 17 and 18, filed an application on June 27, 1940, and on 
June 28, a protest was received from a prominent citizen of Thelma. In view 



346 N. C. Utilities Commission 

of pending application by a bus company to establish service by the highway 
route on which Thelma is situated, the application was held in abeyance until 
bus service was instituted which, according to the record, passes within 
approximately one-half mile of the waiting shed on the railroad. 

Protestant did not withdraw opposition after being notified of establishment 
of the bus service and under requirements of the law this matter was set for 
hearing which came on at the Commissioner's office in Raleigh, at 2:30 o'clock, 
p.m., on October 7, with appearances as above noted. Protestant was duly 
notified and with lapse of sufficient time to allow for any reasonable delay on 
the part of protesting parties, the hearing was called. 

Witness Terrell of the Seaboard testified to the comparatively small number 
of passengers received and discharged at Thelma and to the stopping of the 
train at that station causing the loss of seven minutes, resulting in delay to 
main line trains. The applicant also produced evidence that the Town of 
Summit, 1.7 miles from Thelma is a stop for this train and that one other train 
in each direction is subject to stopping at Thelma. The record also shows that 
several bus schedules in each direction are available to the people of Thelma 
and vicinity. 

While it is not the desire of the Commissioner to deprive the citizens of any 
community of a convenience, it appears that the Seaboard's representations in 
this matter, especially as they refer to delaying train connections transporting 
naval recruits to and from the Norfolk district Naval Base, are sufficiently 
strong to justify granting the authority sought. This in view of protestant's 
non-appearance at the hearing. 

Upon considering all the circumstances and it appearing that the position 
of applicant in the matter justifies eliminating this flag-stop; 

It is Ordered, That application of the Seaboard Air Line Railway Company 
(L. R. Powell, Jr., and Henry W. Anderson, Receivers) be, and the same is, 
hereby granted, effective on or after October 15. 

This the 7th day of October, 1940. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 745. 

COMPLAINT OF THE TOWN OF BELMONT, VERSUS SOUTHERN RAIL- 
WAY COMPANY 

Order 

It appearing to His Honor, Stanley Winborne, Commissioner of the Utilities 
Commission of the State of North Carolina, that respondent, Southern Rail- 
way Company, in the above entitled proceedings has on the 18th day of 
February, 1939, and before its time for answering or otherwise pleading 
having expired, has filed with this Commission a demurrer raising the ques- 
tion of the jurisdiction of the Honorable Commission to pass upon and hear 
the matters and things alleged in petitioner's complaint; and it appearing that 
the question of the jurisdiction of this Commission should be first determined; 

Now, Therefore, it is Ordered, That respondent be allowed thirty days with- 



Decisions and Adjustments of Complaints 34T 

in which to file its answer or otherwise plea from and after the final determi- 
nation of respondent's demurrer filed in this cause. 
This the 20th day of February, 1939. 

Stanley Winborne, 

Commissioner. 
By Order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 1505. 

APPLICATION OP THE SOUTHERN RAILWAY COMPANY AND THE 
RAILWAY EXPRESS AGENCY TO CLOSE AGENCY AND OF THE 
WESTERN UNION TELEGRAPH COMPANY TO DISCONTINUE COM- 
MERCIAL TELEGRAPH SERVICE AT MILTON, NORTH CAROLINA. 

Order 
Appearances : 

Applicants: H. E. Powers and R. C. Howison, Jr., Raleigh, N. C. for 
Southern Railway Company; C. R. Stamps, Raleigh, N. C, for Western 
Union Telegraph Company; L. V. Allred, Raleigh, N. C, for Railway 
Express Agency. 
Protestants: Robert T. Wilson, Yanceyville, N. C, for Town of Milton, 
and W. H. Holmes, Gastonia, N. C, for The Order of Railroad 
Telegraphers. 

Upon request of protestant, Town of Milton, petitioners' application for 
authority to change the status of the Agency at Milton from that of an open 
to a prepay station was docketed and the matter came on for hearing in the 
office of the Commissioner, in Raleigh, N. C, on July 16, 1940, with appearances 
as noted above. 

The Town of Milton is located in Caswell County, North Carolina, on the 
Richmond Division of the applicant railroad, six miles equi-distant between 
the two agency stations of Blanche and Semora. 

In justification of the desire to discontinue this agency, the application is 
based on declining revenues insufficient to meet the expenses of maintaining 
an open station. For a period of thirty-six months just preceding the hearing, 
the earnings of the railroad company were, by months, sufficient to meet the 
expenses for only nine months. The other twenty-seven months did not pro- 
duce sufficient revenue to cover the agent's salary. In the twelve month period 
just prior filing of the application there was only one month in which the 
revenue was sufficient to meet the expenses, and that was occasioned by a 
sporadic movement of road building materials. The average monthly revenue 
for that period was substantially less than the average monthly expenses. The 
record is persuasive that traffic formerly handled by the railroad has been 
diverted to movement over the highways in both private and commercial 
vehicles, utilizing more labor per unit than the rail medium of carriage. 

Since the hearing this Commission has granted authority for the operation 
of a passenger bus line through Milton and while the convenience of the 
people in the immediate vicinity of the railroad station will be lessened with- 
out the services of an agent, a more complete transportation service than 
formerly existed is still available. It is, nevertheless, with great reluctance that 
orders are entered involving transition in labor turnover, or inconvenience in 



348 N". C. Utilities Commission 

any degree to the people in vicinage. However, these matters must be decided 
on their merits and the facts can not be ignored. 

Representatives of applicant Express Company and Telegraph Company 
testified and introduced documentary evidence to show that maintenance of 
their services which are operated in connection with the railroad agency can 
not be profitably operated independently, and that effective substituted serv- 
ices are available. 

It is Therefore Ordered, That application of the Southern Railway Com- 
pany to discontinue its agency at Milton, N. C, be and the same is, hereby 
granted, effective on or after October 1, 1940; and 

It is Further Ordered, That applicant Western Union Telegraph Company 
be, and it is, hereby authorized to discontinue commercial telegraph service 
at Milton; and 

It is Further Ordered, That the Railway Express Agency is authorized to 
discontinue Express Agency at Milton. 

This 21st day of September, 1940. 

Stanley Winborne, 
Commissioner 

By Order of the Commissioner: 
R. O. Self, Chief Clerk. 

Docket No. 1990. 

APPLICATION OF SOUTHERN RAILWAY COMPANY TO REVISE SCHED- 
ULES OF PASSENGER TRAINS NOS. 4, 12 AND 15 BETWEEN CHAR- 
LOTTE, WINSTON-SALEM AND TAYLORSVILLE. 

Second Supplemental Order 

In our order dated April 19, 1938, we permitted the Southern Railway Com- 
pany to discontinue operations of its passenger trains Nos. 2, 4, 7, and 9, 
between Winston-Salem and Greensboro; train 24 between Charlotte and 
Winston-Salem; and to make certain changes in schedules of other trains. 

In first Supplemental Order dated July 21, 1938, we authorized the discon- 
tinuance of mixed trains Nos. 12 and 15, on Sunday, between Taylorsville and 
Charlotte which were inadvertently placed on a seven-day work schedule. The 
schedules of these two trains were also permitted to be changed. 

Applicant, Southern Railway Company, now states that the new schedules 
of trains 4, 12, and 15, failed to be attractive to the traveling public, and it is 
proposed to place these trains on their old schedules which proved to be more 
advantageous to all concerned. 

It is proposed to change departure time of train No. 4, leaving Charlotte, 
from 8:07 p.m. to 8:45 a.m., which will arrive at Winston-Salem at 11:35 a.m. 
instead of 10:30 p.m., as at present. This train, under this schedule, will make 
connections of main line train No. 36 and Columbia Division No. 24, at 
Charlotte. Connection will also be made with Asheville Division Trains No. 
11 and 36 at Barber. 

Train No. 12, proposed to leave Charlotte at 11:45 a.m. and arrive Taylors- 
ville at 4:15 p.m., will make connections at Statesville with trains 22 and 21. 

Train No. 15, proposed to leave Taylorsville at 5:00 p.m. and arrive Char- 
lotte at 7:50 p.m., will connect with Asheville Division Train No. 12 at States- 
ville. At Charlotte, Train No. 15 will connect with main line train No. 38. 



Decisions and Adjustments of Complaints 349 

Applicant states that certain interests in Winston-Salem were apprised 
of these proposed changes, to which no objections were made. Arrangements 
have been made by the United States Post Office Department to provide a 
special star route from High Point to Winston-Salem to handle mail arriving 
at the former point on Train No. 38. 

As the schedules were at one time operative and appeared to be satisfactory 
to the public, applicant will be authorized to again place them in operation. 

It is Therefore Ordered, That Application of Southern Railway Company to 
change schedules of passenger Trains Nos. 4, 12 and 15, between Charlotte, 
Winston-Salem and Taylorsville, in line with the foregoing opinion be, and 
the same is, hereby granted. 

It is Further Ordered, That our orders of April 19, 1938 and July 21, 1938, 
be, and the same are, hereby accordingly modified. 

This 17th day of March, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

Docket No. 1271. 

DISCONTINUANCE OF PASSENGER SERVICE BY VIRGINIA AND CAR- 
OLINA SOUTHERN RAILROAD COMPANY 

Order 

Appearance: J. Q. Beckwith, Lumberton, N. C, for applicant. 

By application filed with the Commissioner by the Virginia and Carolina 
Southern Railroad Company, through its Vice President, J. Q. Beckwith, 
permission is sought to discontinue passenger train service between Lumber- 
ton and Hope Mills and between Elizabethtown and St. Pauls. 

Hearing was held in Raleigh on November 16, 1939, at which no one 
appeared in opposition to the proposed action of applicant. 

During 1937, applicant handled 10,073 passengers, the revenue on which 
amounted to $2,924.69, or an average revenue per passenger of 29 cents. 
During 1938, applicant handled 6,340 passengers on which the revenue 
amounted to $1,967.25, or an average of 31 cents. The average current cost of 
handling each passenger is $1.91. This does not include traffic, track, nor 
general expenses and taxes. The estimated annual cost of operating present 
passenger equipment amounts to $12,140.69. It is proposed, however, to sub- 
stitute motor equipment to operate on the rails to handle only mail and 
express, the annual estimated cost being only $3,849.35, which is slightly less 
than $4,000.00 less than revenue derived from the handling of mail and 
express, which service, if inaugurated, will enable applicant to minimize its 
deficits. For the years of 1932 to 1938, both inclusive, except 1935, deficits 
ranging from $1,641.37 to $16,077.10, resulted from all operations. In 1935, the 
net income of applicant was only $151.14. 

In the territory served by applicant there are five daily bus schedules 
available to the traveling public between Lumberton and Fayetteville ; two 
between Elizabethtown and Lumberton, and one between Fayetteville and 
Elizabethtown, all of which being ample to accommodate the traveling public 
should the trains be discontinued, and which will enable passengers to travel 



350 N". C. Utilities Commission 

between Fayetteville and Lumberton, and between Lumberton and Elizabeth- 
town without changing buses. This service can not be rendered by applicant 
without change of trains. 

It is the opinion of the Commissioner that public convenience and necessity 
no longer require the operation of passenger trains by applicant, and authority 
to discontinue the service will be granted. 

It is Therefore Ordered, That application of the Virginia and Carolina 
Southern Railroad Company, petitioning for authority to discontinue passenger 
train service between Lumberton and Hope Mills and between Elizabethtown 
and St. Pauls, be and the same is, hereby granted to become effective on or 
after January 1, 1940. 

This 20th day of November, 1939. 

Stanley Winborne, 

Commissioner. 

By Order of the Commissioner: 
R. 0. Self, Chief Clerk. 

(SEAL) 

Docket No. 1727. 

Atlantic and Yadkin Railway Company to the Commission. Application for 
authority to discontinue agency at Climax and make same a prepay station. 
Granted. Docket 1610. 

Atlantic Coast Line Railroad Company to the Commission. Application for 
authority to close agency at Elrod. Granted. Docket 1683. 

Atlantic Coast Line Railroad Company to the Commission. Application for 
authority to remove passenger coach on Trains Nos. 436 and 437 between Fa- 
yetteville and Sanford. Granted. Docket 1340. 

Atlantic Coast Line Railroad Company. Complaint of station facilities at 
Sanford by Mrs. H. T. Anderson and others. Adjusted. Docket 1647. 

Seaboard Air Line Railway Company to the Commission. Application for 
authority to dismantle depot building at Abbottsburg. Approved. Docket 561. 

Seaboard Air Line Railway to the Commission. Application for authority to 
discontinue agency at Alma and dismantle depot building. Granted. Docket 
1238. 

Seaboard Air Line Railway to the Commission. Application for authority to 
eliminate stops made by Trains Nos. 107 and 108. Approved. Docket 835. 

Seaboard Air Line Railway to the Commission. Application for authority to 
make changes in passenger train service of Trains Nos. 5 and 191, 2 and 6. 
Approved. Docket 1954. 

Seaboard Air Line Railway to the Commission. Application for authority to 
consolidate Trains 15-17 and 16-18 between Portsmouth, Virginia and Norlina, 
N. C. Approved. Docket 1954. 

Seaboard Air Line Railway to the Commission. Application for authority to 
discontinue Trains Nos. 31 and 32 between Hamlet and Columbia and require 
Trains Nos. 191 and 4 to do the work of these trains. Granted. Docket 1994. 

Southern Railway System to the Commission. Application for authority to 
discontinue station known as Acton as passenger and freight station. Granted. 
Docket 1688. 

Southern Railway System to the Commission. Application for authority to 
discontinue Busbee as a passenger and freight station. Granted. Docket 1653. 



Decisions and Adjustments of Complaints 351 

Southern Railway System to the Commission. Application for authority to 
dismantle present passenger depot at Clayton. Granted. Docket 1995. 

Southern Railway Company. Complaint by Town of Forest City of condition 
of bridge in Forest City. Adjusted. Docket 2064. 

Southern Railway System to the Commission. Change of location of freight 
station at High Point. Approved. Docket 1992. 

Southern Railway Company. Application by Cannon Mills Company for 
replacement of freight and passenger depots at Kannapolis. New station 
erected. Docket 1671%. 

Southern Railway System to the Commission. Application for authority to 
discontinue agency at Newell. Approved. Docket 1645. 

Southern Railway System to the Commission. Application for authority to 
retire combination depot at Patterson Springs. Approved. Docket 1627. 

Southern Railway Company. Complaint by citizens of Whittier of water pipe 
under Southern Railroad track affecting the road near school. Adjusted. 
Docket 1969. 

Southern Railway Company to the Commission. Application for authority to 
discontinue Trains Nos. 1 and 2 between Norfolk and Danville, Virginia. 
Granted. Docket 1712. 

Southern Railway System to the Commission. Application for authority to 
make change in schedule of Trains Nos. 12 and 45. Granted. Docket 2104. 

Virginia and Carolina Southern Railroad Company to the Commission. 
Application for authority to make Hope Mills a prepay point. Approved. 
Docket 1781. 

APPLICATION TO THE INTERSTATE COMMERCE COMMISSION FOR 
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CON- 
STRUCT AND ABANDON LINES OF RAILROAD. 

Atlantic and North Carolina Railroad Company for authority to operate over 
.43 mile of line of Norfolk Southern Railroad Company and to authorize 
Receivers of Norfolk Southern Railroad Company to operate over 2.11 miles 
of line on the Atlantic and North Carolina Railroad Company, all in the City 
of New Bern, Craven County, N. C. Granted. Docket No. 1426. ICC 12180. 

Linville River Railway Company for authority to permit abandonment of 
line of road extending from Montezuma to Pineola, approximately 2.587 miles, 
all in Avery County, N. C. Granted. Docket No. 1706. ICC 12571. 

North and South Carolina Railroad Company and Southern Railway Com- 
pany for authority permitting the former to abandon and the latter to abandon 
the operation of the line of railroad extending from Virgilina to Holloway 
Mines, approximately 3.75 miles, all in Person and Granville counties, N. C. 
Granted. Docket No. 1750. ICC 12639. 

Norfolk Southern Railroad Company for authority for abandonment of (1) 
operation of 2.073 miles in and near Suffolk and (2) line extending from 
Suffolk to Edenton, 47.408 miles, and branch line from Beckford to Elizabeth 
City, 20.257 miles, all in Nansemond County, Virginia and Gates, Pasquotank, 
Perquimans and Chowan counties, N. C. Granted. Docket No. 1755. ICC 
12711. 

Tennessee and North Carolina Railway Company for authority to abandon 
line of railroad extending from Newport Junction, Tennessee to Crestmont, 



352 N". 0. Utilities Commission 

North Carolina, 21 miles in length, situated in Cocke County, Tennessee, and 
Haywood County, North Carolina. Granted. Docket No. 1050. ICC 11714. 

Yadkin Railroad Company for authority to abandon that portion of line of 
railroad extending from milepost 31.64 south of Albemarle to Norwood, a dis- 
tance of approximately 9.53 miles, all in Stanly County, N. C. Granted. 
Docket No. 1257. ICC 11987. 

Telegraph Companies 

Postal Telegraph Cable Company to the Commission. Application for author- 
ity to abandon pole line between Asheville and Morristown, Tenn. Granted. 
Docket No. 1664. 

Postal Telegraph Cable Company to the Commission. Rates between points 
within the State. Approved. Docket No. 1463. 

"Western Union Telegraph Company to the Commission. Application for 
authority to discontinue Creswell as telegraph station. Granted. Docket No. 
1786. 

Western Union Telegraph Company to the Commission. Change in service 
at Mount Holly. Dismissed. Docket No. 1758. 

Western Union Telegraph Company to the Commission. Application for 
authority to discontinue service at Polkton. Granted. Docket No. 1648. 

Western Union Telegraph Company to the Commission. Application for 
authority to discontinue commercial telegraph service at Randleman. 
Granted. Docket No. 1400. 

Western Union Telegraph Company to the Commission. Following rates filed 
and approved: 

Domestic Telegraph Service. 

Rules and Regulations amended as to damages for mistake or delays in trans- 
mission or delivery, whether caused by negligence of its servants or otherwise. 

United States Government Messages. 

Minimum charges amended. Docket No. 1783. 

Money Order Book. Docket No. 1783. 

Serial Rate. Docket No. 2002. 

Supplement No. 40 to Tariff F.C.C. No. 144. Docket No. 2009. 

Supplement No. 55 to Tariff F.C.C. No. 144. Docket No. 2009. 

Amendments to Supplement to Tariffs of Press services. Docket No. 2012. 

Cancellation of Fifth Paragraph as to Groups of Figures, etc. Rules and 
Regulations. Docket No. 2085. 

Payment for services in cash or stamps issued by Company. Docket No. 
2103. 

Telephone Companies 

APPLICATION OF ALBEMARLE TELEPHONE COMPANY TO INCREASE 
CERTAIN TELEPHONE RENTAL RATES AT ITS ALBEMARLE 
EXCHANGE. 

Obdek 

This Matter comes before the Utilities Commissioner upon the application 
from the Albemarle Telephone Company asking that it be permitted to increase 
certain telephone rental rates at its Albemarle Exchange. 



Decisions and Adjustments of Complaints 353 

At this hearing in the office of the Utilities Commission on May 29, 1940, 
Mr. L. D. Coltrane and Mr. L. D. Coltrane, Jr., appeared for the petitioner. 

No one appeared in opposition to the proposal set forth in the petition. 

The Mayor of the Town, the City Manager of Albemarle, the Chamber of 
Commerce of the Town had been duly notified together with other interested 
parties in accordance with the Commission's rules and practices, but the offi- 
cials of these bodies made no appearance as of record they were without oppo- 
sition to the petitioner's proposals. 

The proposed increases were set forth as follows by Mr. L. D. Coltrane, Jr.: 

We are asking for the increase of the business straight lines from $3.50 
per month to $4 per month; two-party business $3.25 per month to $3.50 
per month; residence straight lines $2 per month to $2.50 per month; 
residence two-party lines from $1.75 per month to $2 per month. The rest 
of the rates will remain the same. 

In justification for the said rate increases, Mr. L. D. Coltrane, Jr., made the 
following statement: 

That the town of Albemarle has lower telephone rental rates than com- 
parative towns with equivalent plant and service. That from 1935 to 1939 
the number of subscribers have increased from less than 600 to approxi- 
mately 1,000. That in 1935 there were less than 30 handsets in the town 
of Albemarle while today there are more than 450. That taxes have 
increased from $2,610 in 1935 to $6,034 in 1938, or a total tax of $19,124 
for 1935,* 1936, 1937, and 1938, while the total earnings for the same period 
were $16,021, and improvements to the plant were $42,400. That the annual 
combined official salaries are $2,700. That all plant construction has been 
made cable and creosoted poles. That all toll lines are now copper (replac- 
ing iron). That transmission requirements now comply with the highest 
standards. That wages are higher and hours shorter than at any other time 
in history. Now some of these items have been changed since, in that we 
have recently doubled our central office equipment. 

In view of the statements made by the petitioner, through its representative, 
Mr. Coltrane, the fact that no one appeared in opposition to the proposal 
which had been properly publicized, the fact that the Chamber of Commerce 
of the town of Albemarle, in a letter to the Commissioner, endorsed the pro- 
posed rate increases, and the further fact that in reviewing the proposed 
exchange rates, consideration was given to the extra monthly handset charge 
and the conclusion reached that the rate increases would justify the elimina- 
tion of this extra handset charge, the Commission will grant the increased 
rates requested and provide for the elimination of the handset charge. 

It is, Therefore, Ordered, That effective July 1, 1940, the Albemarle 
Telephone Company is hereby authorized to cancel its present single line 
and two-party business and residential rates and establish in lieu thereof 
the following rates: 

Per Month 

Business, Single Line $4.00 

Business, Two-Party Line 3.50 

Residence, Single Line 2.50 

Residence, Two-Party Line 2.00 

23 



354 "N. C. Utilities Commission 

And it is Further Ordered, That the present extra monthly charge for 
handset type of instrument shall be eliminated and that subscribers may 
change to handset type upon the payment of $1.50 change charge. 
This the 14th day of June, 1940. 

Stanley Winborne, 
Utilities Commissioner. 
By Order of the Commission: 

R. O. Self, Chief Clerk. 
(SEAL) 
Docket No. 1614. 

PETITION OF ALBEMARLE TELEPHONE COMPANY TO REPLACE 
MANUAL TYPE SWITCHBOARD WITH AUTOMATIC TYPE AT BADIN 

Order 

Action in this case comes upon the petition of the Albemarle Telephone 
Company of Albemarle, N. C, to install an unattended automatic switchboard 
at Badin, N. C. (200 lines capacity), to replace the manual board now in use at 
that point. 

In view of the fact that the proposition is one to improve the plant and 
service, it is therefore 

Ordered, That the Albemarle Telephone Company is hereby granted permis- 
sion to install an unattended automatic switchboard of 200 lines capacity at 
Badin, North Carolina, to replace the present manual type. 

This the 1st day of March, 1939. 
; Stanley Winborne, 

Utilities Commissioner. 

By Order of the Commission: 
R. O. Self, Chief Clerk. 

Raleigh, North Carolina, March 1, 1939. 

Docket No. 1553. 

PETITION OF THE ALBEMARLE TELEPHONE COMPANY TO INSTALL 
UNATTENDED AUTOMATIC TYPE OF SWITCHBOARD AT OAKBORO, 
WITH RATES SAME AS RATES AT ALBEMARLE. 

Order 

Action in this case comes upon a petition of the Albemarle Telephone Com- 
pany of Albemarle, North Carolina, for permission to install at Oakboro, in 
Stanly County, an unattended automatic switchboard of 50 lines capacity, with 
an initial installment of 30 lines, with rental rates the same as the rental 
rates of Albemarle with the proviso that no toll charge shall be imposed for 
subscribers for service between Oakboro and Albemarle. 

It is pointed out that at present Oakboro has no telephone service other than 
that of multi-party line service with the Albemarle exchange. 

In view of the proposed improved service for Oakboro and the further condi- 
tion that the subscribers at Oakboro are to be accorded the Albemarle rental 
charge, therefore it is 

Ordered, That the Albemarle Telephone Company is hereby given authority 
to install an unattended automatic switchboard